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Currencies: Euro weakened against $, the Pound falls heavily

13/10/2020
Source : zonebourse.com
Categories: Economy/Forex

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The Euro fell heavily (-0.65%) against the $, towards 1.1740 while the ECB continued its purchases and added 20 billion euros for a balance sheet of 6,727 billion euros, algebraically following the Fed with its $7,080 billion... but this actually represents $7.93 trillion and symbolically represents 66% of the Eurozone's GDP.

The Euro is also weakened by the ZEW index of German investor sentiment: the monthly barometer stands at 56.1 against 77.4 in September (the consensus expected a slight decline to 74): this causes a decline of more than 0.9% of the Frankfurt stock exchange.
The E-Stoxx50 is however resilient (-0.57% to 3,279Pts, thanks to ASML and its +2.5%) despite the decline of -1.1% in Madrid and -0.8% in Milan.

The Dollar was little impacted by US inflation: US consumer prices rose by 0.2% in September compared to the previous month (same score for core inflation), according to the Labor Department, in line with what economists expected on average.

Compared to September 2019, the price index increased by 1.4% on a gross basis and by 1.7% excluding volatile items.

The pound was the weakest currency on Tuesday with a fall of -1.05% against the Dollar towards 1.2930 (risk of a no-deal Brexit, fears are revived).
The Dollar also gained +0.7% against the Swiss Franc at 0.9150.

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