The euro fell against its major rivals today after the release of worse-than-expected economic reports in Germany and France. Fears of trade wars were also hurting the currency. Currently, the euro has trimmed its losses but is still trading below the opening level.
German industrial production fell 1.0% in April from the previous month instead of rising 0.4% as analysts had predicted. The trade balance surplus shrank to â¬19.4 billion in April (seasonally adjusted) from â¬22.0 billion in March, below the forecast level of â¬20.3 billion. French industrial production fell 0.5% in April from March, whereas analysts had predicted an increase by 0.4%.
Now, traders wait for the outcome of the Group of Seven summit over the weekend. Debates about trade, protectionism, and trade wars will likely be heated. And that made investors nervous, deterring them from purchasing riskier assets.
EUR/USD fell from 1.1798 to 1.1771 as of 16:57 GMT today but bounced from the daily low of 1.1727. EUR/GBP was down from 0.8787 to 0.8779, touching the low of 0.8759 intraday. EUR/JPY declined from 129.40 to 128.90, and its daily minimum was at 128.11.
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