The common currency Euro had earlier struck a fresh 5-week peak versus the US Dollar as concerns that a global trade war had been brewing now seem to be receding. That had pushed investors to flock back into higher yielding assets which provided the Euro with solid gains since Monday. The latest data from the Eurozone has put a damper on the Euro’s climb, however; the latest surveys released by the European Commission have shown that confidence in the Eurozone in several areas, namely, services, industrial, business and economic sentiment, all came in with an unexpectedly low reading.
As reported at 11:06 (BST) in London, the EUR/USD was trading lower at $1.2413, down 0.27%; the pair had earlier hit a peak of $1.2473, while the low for the session is at $1.24099. The EUR/JPY is trading at 131.15 Yen, down 0.07%; the pair has ranged from a session low of 131.1230 Yen to a peak of 131.8160 Yen. The EUR/GBP was trading at 0.87877 Pence, up 0.4207% and well off the session low of 0.8747 Pence.
Dollar Gains Still Dubious
Despite the overall improvement in risk sentiment, traders are still betting that Dollar weakness could be prolonged, especially given the budget and trade deficits in the US. Moreover, there are still some lingering concerns that, though there may not be an outright trade war, the discussion between China and the US regarding trade also may not result in any meaningful outcome.