April 5th 2012, Monami Yui, Kristine Aquino, Chris Fournier, Cecile Gutscher & Lucy Meakin, Bloomberg.com
The Euro traded low against the Yen and Dollar as the European debt crisis still keeps the region's economy in the dark. This was a 3-week low against the Dollar as a speculation report today showed German industrial production fell in February, supporting the European Central Bank to keep its interests low (Yui & Aquino, 2012).
“Most of Europe is going through a contraction,” said Andrew Salter, a foreign-exchange strategist in Sydney at Australia & New Zealand Banking Group Ltd. (ANZ) “If the peripheral governments cannot make the necessary reforms, in the long term that’s a negative for the euro” (Yui & Aquino, 2012).
In other news, the Canadian Dollar fell against the US Dollar, reflecting Canada's slow employment growth rate (Fournier & Gutscher, 2012). Last month Canadian employers added 10,500 new jobs, or 10,000 in the first quarter compared to first quarter of 2011 where it was 75,000 (Fournier & Gutscher, 2012).
Also the Great Britain Pound gains to a 2-month high against the Euro and 16 of its counterparts as unexpected growth in services and increase in house prices (Meakin, 2012). It gained 0.5% to 82.73 pence per Euro after appreciating to 82.62, the strongest since Jan. 16. Against the Dollar it fell 0.3% to $1.5874 (Meakin, 2012).
“The pound is performing well,” said Neil Jones, head of European hedge-fund sales at Mizuho Corporate Bank Ltd. in London. “Services continue to outperform, house-price data blew the doors off” (Meakin, 2012).
To read the full articles, go here:
1) Yui, M & Aquino, K, 2012 Bloomberg.com
2) Fournier, C & Gutscher, C, 2012, Bloomberg.com
3) Meakin, L 2012, Bloomberg.com
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