Euro Retains Losses on Germany

Today, the euro retained losses that it made yesterday as macroeconomic data from Germany disappointed Forex market participants, while the political situation in the country remained uncertain. The currency continued to rise versus the Great Britain pound.

The Ifo Business Climate Index for industry and trade in Germany was at 107.7 in September, virtually unchanged from the August reading of 107.6. Economists have expected an increase to at least 108.4. Still, the data was not particularly awful and the report said:

Although companies assessed their current business situation slightly less favourably, their business expectations were once again more optimistic. The German economy made a confident start to the autumn.

Angela Merkel has won elections for the third time, but did not secure enough votes to create government without opposition parties and this creates political uncertainty in the country.

EUR/USD was at about 1.3473 as of 3:08 GMT today after dropping from 1.3491 to 1.3471 yesterday. EUR/JPY ticked down from 133.02 to 132.89 following yesterday’s drop from 133.33. EUR/GBP went up from 0.8417 to 0.8424.

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