The Euro jumped briefly against most counterparts after strong-than-expected data on German business sentiment as Europe’s powerhouse is at least showing its economy is continuing to improve, even as weaker periphery economies struggle. EURUSD surged to 1.4304 from 1.4189 but soon fell again after comments from a Greek government MP, who said he would vote against the austerity measures next week, and this caused market jitters and pushed down the Single Currency.
Sterling dipped to near its three month low against the Dollar on a fresh round of sell-off by traders who are concerned any about a still-worsening economic outlook of the UK based on the Bank of England signalling that it could embark on another round of quantitative easing. Cable dropped to a session low of 1.5950 before rebounding 1.6046, lifted by investors buying on dips. The Pound gained 55 pips against a weaker Euro, with EURGBP dropping from 0.8925 to 0.8868.
The Euro came close to its all-time low versus the Swiss franc, dipping to 1.1862 based on worries about the Greek debt. General risk aversion in the market boosted the Swiss currency against the Dollar as well, with USDCHF dipping to its lowest level in three weeks, to 0.8336. The greenback then rebounded by 50 pips after the news of better than expected US Durable Goods Orders.
The Yen gained ground against a weak Euro. EURJPY bottomed at 113.76 from the open price of 114.70. The Single Currency looks set to remain weak until European finance chiefs will decide on July 3 whether Greece has met conditions for its next aid payment. Then Yen also rose against the Dollar, with USDJPY dropping to 80.12 from a session high of 80.59. The Dollar rebounded slightly after US Durable Goods Orders were released better than expected, as well as US final quarterly GDP data.
Note: Daylight Saving Time in effect for GMT