Fundamental Comment

Euro halts rally after Germany’s confidence data

Euro halts rally after Germany’s confidence data

The euro witnessed a decline during Thursday’s trading, ending a four-session wave of rise against the dollar. This comes after data on consumer confidence in Germany, which witnessed a significant decline and thereby added to the frustration in the markets.

The euro against the dollar reached its lowest level today at 1.1823, after opening today's session at the level of 1.1851. Yesterday, the euro climbed to 1.1879, marking its highest level in five weeks.

Consumer confidence data in Germany showed a drop by 3.1% in November, after the previous reading was down by 1.7%, while expectations were for a decrease of 1.7%.

European stocks hit their lowest level in nearly a month on Thursday, as lower German consumer sentiment, concerns about the high incidence of Coronavirus on the continent and the impasse of US stimulus affected sentiment.

On the other hand, the US dollar recovered today from its lowest level in 7 weeks, which it recorded during yesterday's session, where uncertainty about the approval of the US Congress on a new US stimulus package remains predominant. 

The dollar index, which measures the performance of the federal currency against a basket of six major currencies, recorded its highest level today at 92.90 and after it opened today's trading at the level of 92.72. 

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