Euro Bounces as US Indicators Disappoint

The euro bounced today after the initial drop as some economic indicators released from the United States were not as good as dollar bulls were hoping for, reducing the shine of the US currency.

The Conference Board consumer confidence index for the USA fell this month instead of rising as was predicted by market analysts. The Richmond Fed manufacturing index slumped from 20 to 4 in November. While a drop was expected, most experts did not think that it would be so big.

The euro dipped earlier as US gross domestic product came out stronger than was anticipated. The second estimate demonstrated 3.9 percent growth in the third quarter of this year compared to the first estimate of 3.5 percent and the consensus forecast of 3.3 percent.

The shared 18-nation currency also rallied yesterday due to the positive German business climate index.

EUR/USD advanced from 1.2441 to 1.2471 as of 23:14 GMT today after falling to 1.2402 earlier. EUR/JPY traded at about 146.99 following the drop from 147.13 to 146.29. EUR/GBP rose from 0.7918 to 0.7940.

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