The euro currency withdrew from its October high on Monday and traded flat against the US dollar during the European morning trading hours. While Germany posted a drop in its trade surplus for October, falling below analysts’ estimates.
The euro-bloc currency stood at $1.3700 against the US dollar as of 7:52am GMT, after it rose to its highest level in over a month earlier in the session, the pair was at $1.3721. The euro rose 0.15% higher at ¥141.14 against the yen and edged 0.07% lower to £0.8374 against the pound sterling at the same time.
“The EUR has been supported of late, mainly on the back of a less dovish than expected ECB press conference. Although central bank President Draghi continued to stress downside risk to growth, he did not make a case for additional policy action to be imminent. We remain of the view that EUR/USD upside should be limited from the current levels,” Credit Agricole wrote in a note on Monday.
On Friday, the European Central Banks (ECB) decided to maintain its interest rates at 0.25%.
Germany’s trade balance came in at €17.9 billion in October, from €20.3 billion recorded in the previous month. Exports rose 0.2% to €99.1 billion in October, while imports edged up 2.9% to €81.2 billion.
Germany’s industrial production is forecasted to rebound and rise 0.7% month-on-month, compared to the 0.9% recorded in September.
On Friday, the Bureau of Labour Statistics posted its jobs release for November, showing an addition of 203,000 new employees in the US economy during the month.
The Non-farm payrolls data revealed 203,000 new jobs were added in November, up from the 200,000 recorded in the previous month and exceeding analysts’ forecast of 185,000, according to the Bureau of Labour Statistics.
Market participants remain focused on the Federal Reserve’s (Fed) next meeting; which would likely hint when the central bank could to begin taper its asset-purchases scheme.
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