The euro fell against the US dollar and the Great Britain pound on Monday but has trimmed its losses by now. The currency fared worse versus the Swiss franc and the Japanese yen, keeping its big losses.
There were plenty of reasons for the euro’s decline. One of them is political uncertainty in Europe ahead of this year’s elections. In particular, France is preparing for presidential elections in April, and far-right National Front leader Marine Le Pen announced that she plans to bring the country out of the eurozone if she wins the presidential post.
Dovish remarks from Mario Draghi, President of the European Central Bank, was another reason for the euro to drop.
As for Monday’s economic data from the eurozone, it was somewhat mixed. The headline Sentix investors confidence index fell from 18.2 in January to 17.4 in February. The report was not entirely bad, though, as the actual value was still better than the average forecast and the assessment of the current situation was the best since May 2011. Meanwhile, German factory orders increased 5.2% in December from November, far more than analysts had promised.
EUR/USD fell from 1.0786 to 1.0705 intraday before rebounding to 1.0750 as of 21:47 GMT today. EUR/GBP declined from the opening of 0.8636 to trade at about 0.8622, touching the low of 0.8591. EUR/JPY tanked 1% from 121.30 to 120.08.
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