The dollar continues to rise against the euro, which returns below the threshold of $ 1.12
(CercleFinance.com) – Thursday noon on the foreign exchange market, the single European currency continued to lose ground after the publication of a disappointing indicator for Germany yesterday morning. After losing 0.60% yesterday, the euro still yields 0.20% this afternoon and returns to 1.1133 dollars. It loses 0.45% against the yen but remains neutral against the sterling and the Swiss franc.
Published yesterday, the Ifo index measuring the business climate in Germany fell short of expectations, coming out last month at 99.2 points, while it was expected at 99.9 and after 99.6 previously. The expectations sub-index is also below expectations (95.2 vs. 96).
'The European currency has reached a low since June 2017 against the dollar after the publication of the Ifo index of the business climate in Germany in April, which reinforces – in the eyes of forex traders – the idea of a widening of the growth gap between Europe and the United States, comment Paris analysts this morning.
'Still mediocre indicators', we are sorry at the Bank Postale. 'It is still compatible with growth of 1.2% this year in the euro zone. But German rates have dropped below 0% and the euro has fallen below 1.12 against the dollar for the first time in two years, say experts.
'Ifo weakens slightly, but' business climate 'and' present prospects' remain above the long-term average, only the 'outlook' is below. Here too, a mediocre message, without real re-acceleration of growth and a trend that remains close to potential, "they add.