Euro Loses Ground, Knocked Out by Dollar

The euro lost its ground against the US dollar, as well as against other most-traded currencies, after the Federal Reserve released its policy minutes. The currency fell also as not all economic reports from the countries of the eurozone were favorable.

The Fed’s minutes allowed the dollar to rally, knocking out the euro. While many other currencies managed to retain at least some gains versus the greenback, the common currency of the eurozone was not as lucky. The euro retreated not just against the US currency but versus its other major peers as well.

As for economic indicators, there were some big disappointments. German factory orders fell 0.9 percent (seasonally adjusted) in February from the prior month, frustrating economists who have predicted an increase by 1.5 percent. Eurozone retail sales were down 0.2 percent in February.

EUR/USD dropped from 1.0813 to 1.0779 as of 23:44 GMT today after rising to the high of 1.0886 intraday. EUR/GBP fell from 0.7302 to 0.7246 and EUR/JPY dipped from 130.04 to 129.50.

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