Euro Makes a Small Leap Forward
On Wednesday, the euro modestly nudged up by 0.17% against the U.S. dollar, hitting a peak of 1.09549 before settling back into a bit of sideways action later in the session. While the move was nothing earth‑shattering, it does illustrate how the currency keeps dancing on the line between buyer and seller sentiment.
GBP: A Slightly Swinging Edge
Against the pound sterling the same day, the euro reached 0.86166 at about 7:45 a.m. – a figure that’s close to the higher levels already seen this week.
Behind the Numbers: France & Italy
Despite the euro’s modest day, underlying data was an interesting mix, and here’s what kept the currency’s fortunes alive:
- France’s industrial output: November’s stats showed a 0.5% monthly rise – beating the 0.1% expectation – the fastest gain since July last year. Over the quarter ending in November, growth hit 0.8% vs. the same period a year earlier.
- Machines & equipment: A jump of 2.8% this month (up from 0.7% in October).
- Mining, energy, water: Caught a rebound of 1.8% after a 2.7% contraction.
- Transport equipment: Saw a drop of 5.5% after a previous 9% rise – not surprising, as this sector is famously volatile.
- Energy‑heavy industries: Still struggling due to increased electricity and gas costs that hammered production during 2022, reducing output for the upcoming contracts.
In Italy, retail sales stayed on an upward trend for a second month, climbing 0.4% – a surprise that disappointed loyal Italians. Yet, over the three months ending in November, sales dipped 0.1% on a YoY basis. Still, consumer trade kept a 1.5% annual growth for 32 months straight.
Bonds: The Quiet Chaos
Bond yields were in turmoil:
- Ten‑year German yields dropped to 2.160% at their low.
- U.S. Treasury yields fell to 3.979%, nearly hitting their week‑low.
These shifts haven’t put extra pressure on the euro – the declining U.S. yields provided some breathing room.
What’s Next?
Be on the lookout for December’s U.S. inflation figures tomorrow (expected to rise to 3.2% YoY). A bump here might tilt the scales for the euro again.
