Euro Sees Mixed Results Versus Major Counterparts

The euro saw mixed results against its major rivals as stocks saw modest weakness, limiting risk appeal. The 16-member currency hit a 5 1/2-month high against the sterling before paring the gains.

The European Central Bank said Eurozone's annual rate of growth of M3 eased to 2.5% in August from 3% in July. The annual rate was smaller than the expected 2.7%.

The French consumer confidence index improved to minus 36 in September from minus 37 in August, the statistical office Insee said Friday. That was in line with expectations. The indicator rose for the second straight month.

German consumer confidence for October improved to 4.3 points from a revised value of 3.8 points in September, the latest monthly survey from GfK Group showed Friday.

The euro moved near its overnight levels against the dollar, trading close to 1.4670 in the early afternoon. The euro hit a three-day low of 1.4618 yesterday after hitting a yearly high of 1.4843.

A Commerce Department report showed that new home sales rose 0.7 percent to an annual rate of 429,000 in August from a revised 426,000 in July. Economists had expected sales to increase by 1.6 percent to 440,000 from the 433,000 originally reported for the previous month.

The euro rallied to a 5 1/2-month high of 0.9218 against the British pound, continuing a recent assault. The common currency has been trending higher for two weeks.

Total business investment in the UK dropped a seasonally adjusted 10.2% sequentially in the second quarter, better than a 10.4% fall estimated previously. Economists expected the decline to be 10.4%. In the first quarter, investments were down a revised 8.9%.

The euro dipped to an 11-day low of 131.57 against the Japanese yen. The European currency has been trending lower since Wednesday.

by RTT Staff Writer

Source: rttnews.com