Börse Express – Foreign Exchange: Euro falls below 1.18 dollars after weak economic data

The Euro came under significant pressure on Friday after weak economic data. The price fell below $ 1.18 and hit a daily low of $ 1.1784 at noon. This is around a cent less than the daily high in the morning. The European Central Bank (ECB) set the reference rate on Thursday afternoon at $ 1.1850.

The highly regarded purchasing managers’ index for the euro zone fell significantly in August. Observers, however, had expected a slight improvement in corporate sentiment. The recovery phase that began in May is thus initially interrupted.

The indicator for the service sector deteriorated particularly markedly. Most recently, the number of new infections with the corona virus rose again in Europe. In France the decline was stronger than in Germany. The euro exchange rate recently benefited from the fact that the corona crisis in Europe was milder than in the USA.

“The setbacks do not come as a surprise because of the re-introduced Corona restrictions, but the extent of this raises doubts about the dynamism of the economic recovery,” commented Ralf Umlauf, from Landesbank Hessen-Thüringen (Helaba). He also points out that in France, in addition to the service sector, industry is also less optimistic./jsl/bgf/jha/

 ISIN  EU0009652759

AXC0150 2020-08-21/13:35

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