Before Ifo report: This is why the euro is falling after a new multi-year high – British pound under pressure | message
Forex in this article
With regard to the negotiations on a trade agreement between the European Union (EU) and Great Britain, skepticism has grown again. By the afternoon, the common currency had dropped to $ 1.2229. On Thursday it had reached the highest level since April 2018 at $ 1.2273. The European Central Bank (ECB) set the reference rate at 1.2259 (Thursday: 1.2246) US dollars. The dollar cost 0.8157 (0.8166) euros.
With regard to the tough trade talks, British Prime Minister Boris Johnson appealed to the EU that the union of states should come to their senses. “Our door is open, we are still talking, but I have to say it looks difficult,” said Johnson during a visit to a company in Manchester. From the point of view of EU negotiator Michel Barnier, there are only “a few hours” left if a Brexit trade pact is to come into force on January 1st.
The increased development not only burdened the euro. The British pound fell against all major currencies. According to economists, Great Britain would suffer even more than the EU from an unregulated exit. In the past few days, the pound had rallied amid temporarily increased confidence.
Robust economic data from Germany did not support the euro. With the Ifo business climate, Germany’s most important economic indicator surprisingly brightened in December despite the stricter Corona restrictions. Both the current situation and the prospects for the next half year were rated better by the companies surveyed.
For other major currencies, the ECB set the reference rates for one euro at 0.90828 (0.90050) British pounds, 126.69 (126.19) Japanese yen and 1.0845 (1.0821) Swiss francs. The troy ounce of gold (31.1 grams) was trading at $ 1,883 that afternoon in London. That was about a dollar less than the day before.
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