The euro is down to a 6-week low after signs that economic growth could be slowing in Germany and France. The single currency dropped by more than 0.5% to $1.1402.
Euro zone business growth slowed much faster than expected this month, a widely-watched Purchasing Managers Index (PMI) survey showed.
A three-week stock market sell-off may signal concerns that the massive US stimulus will tone down earlier than expected. This forms a main issue for the Fed as it considers when to halt interest rate hikes.
Oil prices climbed towards $77 a barrel following a drop to a 2-month low. The focus is back in the U.S. sanctions on oil exporter Iran. However, concerns about a weaker demand outlook weighed.
Traders are nervous about the deepening row between the EU and Italy over Rome’s budget plans, ongoing trade wars and political tensions between Saudi Arabia and the West.
Forex – Commodities –Euro is down to a 6-week low
The euro was the only big mover, with broader currency markets trading flat as investors remain nervous. Forex traders are not sure about which direction to take after this week’s sharp falls in stocks prices.
The dollar traded flat against its major traded rivals. President Trump escalated his attacks on Federal Reserve Chairman Jerome Powell, however Forex traders did not seem to respond.
The yen, often bought when broader markets slide, gave up some of its earlier gains. The Japanese currency edged lower to 112.48 yen per dollar but remains almost 2%t up since Oct. 4.
The Australian dollar, often seen as a liquid proxy of China-related trades, rose 0.1%, supported by improved sentiment in Asian markets.
The British pound had slipped further 0.2% to $1.2959 ahead of Theresa May’s meeting with her party’s “1922 Committee”.
The euro dropped to a 6-week low on economic growth fears. The single currency dropped by more than 0.5%. The euro also fell 0.4 percent against the Swiss franc to 1.1372 francs, a two-week low.
Oil prices held below to $77 following a drop to a 2-month low in the previous session. Only two weeks left before U.S. sanctions potentially obstruct Iranian crude supplies. Brent crude futures rose by 52 cents a barrel to 76.96$ a barrel. U.S. crude futures or WTI rose by 65 cents a barrel from their last close.
Sources: Reuters, CNN money, BBC
PLEASE NOTE The information above is not investment advice.