Economic data in focus: This is why the euro is dropping somewhat – British pound still under pressure | message
Forex in this article
In the afternoon, the common currency, the euro, was trading at US $ 1.2102. It was thus slightly lower than in the morning. The European Central Bank (ECB) set the reference rate at $ 1.2114 (Monday: 1.2128). The dollar cost 0.8255 (0.8245) euros.
Surprisingly good economic data from Germany hardly affected the euro. The economic expectations collected by the Center for European Economic Research (ZEW) rose faster than expected. The announcement of vaccine approvals soon allows the experts to look to the future with more confidence, said ZEW President Achim Wambach. The assessment of the current situation, on the other hand, clouded over in the face of new corona restrictions.
On the other hand, the British pound came under pressure again. There is still no agreement on a Brexit trade pact between Great Britain and the European Union (EU). After two phone calls between British Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen failed to bring about a breakthrough, hopes rest on a meeting between the two politicians in the next few days.
The pound recovered temporarily in the afternoon. The British government agreed to delete or amend controversial passages in a bill that had caused a lot of resentment in Brussels. However, the pound quickly came under pressure again. Voices from the German and Irish governments were rather skeptical about the prospects of success of the negotiations.
For other major currencies, the ECB set the reference rates for one euro at 0.91143 (0.91215) British pounds, 126.18 (126.30) Japanese yen and 1.0781 (1.0802) Swiss francs. The troy ounce of gold (31.1 grams) was trading at $ 1,868 that afternoon in London. That was about $ 5 more than the day before.
/ jsl / bgf / men
Image Sources: Route66 / Shutterstock.com