The Euro Near a 3-Month Low After German Data

The euro traded near a three-month low against the dollar on Wednesday after German data raised doubts about the strength of the economic recovery, while the US currency awaited the minutes of the Federal Reserve’s latest meeting.

The single European currency was trading at $1.1820, after touching a three-month low of $1.1806 on Tuesday. Against the Japanese currency, it fell to 120.81 yen, nearing a two-month low of 130.05 yen hit on June 21.

Investor sentiment in Germany, the eurozone’s largest economy, fell sharply in July, but remains at a very high level, according to data from the ZEW Institute for Economic Research.

Separate data showed that orders for German-made goods recorded the biggest drop in May since the start of the lockdown measures in 2020, due to weak demand from countries outside the Eurozone.

The Australian dollar rose 0.15% to $ 0.7502, consolidating after yesterday’s gains after the Reserve Bank of Australia adopted the first step towards reducing stimulus.

The Japanese currency settled at 110.66 yen against the dollar, maintaining gains after hitting a 15-month low of 111.64 yen last week.