Euro Loses Weekly Gains

The euro sank today, losing most of its weekly gains versus the US dollar and erasing the weekly rally against the Japanese yen completely. The currency fell even though macroeconomic news from Germany was positive.

The GfK German Consumer Climate rose from 9.7 in March to 10.0 in April while economists have though that the gauge would stay little changed. The Ifo Business Climate Index for Germany rose from 106.8 in February to 107.9 in March, also exceeding expectations. Yet all the positive data was unable to help the euro today.

One of the reasons for the weakness of the shared eurozone currency is the rally of the dollar. Another one is the continuing financial crisis in Greece. The indebted country failed to secure quick loan yesterday as European creditors refused to provide a bailout without seeing first the plans for fiscal reforms.

EUR/USD dropped from 1.0969 to 1.0878 as of 19:26 GMT after touching 1.1052 — the highest level since March. EUR/JPY dipped 1 percent from 131.06 to 129.73. EUR/GBP slid from 0.7371 to 0.7326.

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