Euro rises after surprise rise in German business mood
Frankfurt (Nov 24) The euro climbed against most major currencies on Monday after the closely watched Ifo survey showed German business confidence unexpectedly improved in November.
The shared currency EURUSD, +0.51% exchanged hands at $1.2409, up from $1.2392 late Friday in North American trade. The upbeat trading mood came after Ifo Institute said its monthly business confidence survey rose to 104.7 in November from 103.2 in October, breaking a string of six-straight monthly declines. Economists surveyed by The Wall Street Journal had expected a reading of 103. European stocks were also higher after the data.
Keeping gains for the euro in check, however, were comments from European Central Bank President Mario Draghi who, in a dovish speech last week, said it was necessary to bring eurozone inflation up to the ECB’s target “without delay.” The remark sparked further speculation that the ECB will embark on full-scale quantitative easing, which likely would weaken the euro.
In other currency pairs, the yen USDJPY, +0.43% fell against the dollar, with the greenback buying ¥118.245, up from ¥117.72 Friday.
The ICE dollar index DXY, -0.20% which measures the dollar against a basket of six other currencies, slipped to 88.23 from 88.3070. The WSJ Dollar Index BUXX, +0.08% rose 0.1% to 80.49.
The Aussie dollar AUDUSD, -0.81% dropped 0.5% to 86.29 U.S. cents, while the pound GBPUSD, +0.38% rose to $1.5690 from $1.5654 on Friday.
You’re invited: A free evening event focusing on investing opportunities in Europe
Will you be in London on Dec. 3? Then you’re invited to our MarketWatch Investing Insights event, “The worse Europe gets, the more you should invest.”
Governments are in trouble, reform efforts have stalled, unemployment is climbing. The news from the eurozone is bleak, and investors are fleeing. But that’s a mistake: The worse the economic data from Europe get, the more you should be buying. Why? Because actions by the ECB will boost asset prices and the stock market in particular. And, big exporters can grow sales. Lower costs and steady sales translate into higher profits and dividends. Join us for an evening of cocktails and conversation to explore these opportunities.