By TraderVox.com
Tradervox (Dublin) – The 17-nation currency has lost against most of its peers after gaining for the better part of the week. This has come just before a report from Germany, the region’s biggest economy, is set to show that exports fell in April due to concerns of deteriorating economy as a result of prolonged European debt crisis. Investors are staying safe as they buy haven assets boosting demand for the yen and dollar. Euro is set to close the week on a low as risk appetite diminishes.
According to most economist, a report from Germany will show that the country’s exports decreased by 0.7 percent in April from March when they increased by 0.8 percent. Alex Sinton, who is a director for Institutional Foreign Exchange at Australia & New Zealand Banking Group Ltd, while talking about the report said that the situation in Europe is still shaky with a bunch of problems to deal with. He added that the recent euro rally will put more pressure on the currency as investors look for better reports and data from the region. The euro remains the worst performer in the last six months dropping by 3.7 percent while the dollar and the yen increased by 3.4 and 0.9 percent respectively over the same period.
Concerns about the euro area has dampened demand for riskier assets sending the Australian dollar down 0.4 percent against the US dollar to trade at 98.55 US cents and 0.8 percent lower against the yen to exchange at 78.16 yen. The 17-nation currency dropped 0.7 percent against the yen to trade at 99.33 yen per euro while it lost 0.3 percent against the dollar. It traded at $1.2518 during the mid-day trading in Tokyo.
Analysts and investors are now looking forward policy makers’ meeting in Japan and US on June 14-15 and 19-20 respectively. They will keep a close eye on any changes that might be proposed by the two nations.
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