Uplifting economic data from Germany pushed up the value of the 17-nation single currency on Tuesday as the euro pecked away at losses to the U.S. dollar, according to Reuters.
The euro's performance also benefited from the fees on short-term borrowing in Spain falling as the nation is one suffering under the duress of the sovereign debt scourge. But the brunt of gains derive from the monthly business climate index administered to 7,000 companies in Germany by think tank Ifo of Munich. The index saw a gain to 107.2 in December from 106.6 last month.
Though the euro gained in value, the future for the embattled currency does not appear to be very bright as indicated by increases to a debt fund.
"They have agreed to boosting resources by 150 billion euros which still raises questions about Italy and the threat of rating agencies looming," currency strategy head Simon Derrick with Bank of New York Mellon told Reuters. "You just need another piece of bad news and the euro will [be] nudging closer to its 2011 lows."
The U.S. Dollar Index, a gauge of the U.S. dollar's strength when held against six rival currencies, slipped on Tuesday, according to MarketWatch.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
