Tuesday, 18 May 2010

EUR Trades Lower Against the USD

The EUR turned lower in U.S trading today, surrendered its earlier gains against the USD, on renewed concerns regarding Euro-Zone sovereign debt crisis. U.S. stocks turned negative as markets focused again on potential issues stemming from the massive Euro-Zone rescue package and possible slowing of growth in the region.

The USD was modestly negative versus the Yen after the release of lukewarm economic data. The U.S. producer-price index for finished goods fell by a seasonally adjusted 0.1% in April from March. Economists had expected a 0.1% increase. U.S. housing starts, however, rose 5.8% to a seasonally adjusted 672,000 annual rate in April, beating out expectations of a 3.8% rise.

The EUR fell to $1.2369, after being as high as $1.2444 earlier, compared with $1.2384 late Monday in New York Trading. The common currency was at 114.36 Yen from 114.64 Yen. the USD was little changed versus the Yen at ¥92.58, compared to ¥92.52 late Monday. The Pound was at $1.4421 from $1.4477.