The 17-nation European currency traded with moderate gains against the greenback on Friday after October Ifo survey showed a negative business climate in the euro area’s largest economy in October.
The euro edged 0.13% higher against the US dollar at $1.3818 at the time of writing and declined 0.13% lower at ¥134.04 versus the yen.
Ifo survey
Business surveys from the institute for Economic Research (Ifo) showed that Germany’s business sector was worsening. The ifo Business Climate survey, showed balances of the business situation and expectations came in at 107.4 points in October, against forecasts of 108.0 and September’s reading of 107.7.
The reading for the current assessment survey came in at 111.3 points, compared to September’s reading of 111.4. The expectation survey showed business forecasts for the next six months would come in at 103.6 points against the estimated 104.5.
Italy’s Retail Sales
Eurozone’s third largest economy posted its retail sales data for the month of August, indicating the condition for the sector remained unchanged.
The Italian National Institute of Statistics showed that the retail sales remained unchanged month-on-month on a seasonal basis and advanced 0.2% year-on-year in August, compared to forecasts of 0% and -2.3% respectively made by analysts.
US Dollar’s Weakness
The US dollar was seen declining for its second weekly loss against the 17-nation Eurozone currency and the Japanese yen.
Meanwhile, investors are predicting the Federal Reserve will certainly postpone tapering of its stimulus program till next year, after the impact of the 16-day government shutdown had on the world’s largest economy.
The US partial government shutdown may have cost the US economy 0.25 percentage points from its fourth-quarter economic growth and approximately 120,000 jobs in October, according to President Obama’s chief economic adviser Jason Furman.
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