The Euro traded in a mixed environment on Tuesday, by growing against major safe haven currencies and depreciating versus commodity currencies and the British Pound.
Statistical data from Germany was rather disappointing on Monday, as the IFO business climate indicator slumped to the lowest level since February 2015. Despite that, the Euro was resilient to all fundamental shocks and benefited from a renewed decline in equity and commodity markets.
European fundamentals disappointed on Friday, as composite Euro zone's PMI indicator declined more than expected in January and both France and Germany posted worse-than-estimated data.
A rebound in oil prices that had occurred earlier during the trading session on Thursday was perfectly reflected in the development of commodity-linked currencies.
Wednesday was bearish for the 19-nation currency, as no green candles were sometimes seen throughout several sessions in Asia, Europe and US. Equities across the globe were sent continuously to the downside, but the safe-haven Euro failed to attract market attention, as investment into the Yen soared.
The Euro competed with the British Pound to become Tuesday's most positive performer. However, the 19-nation currency registered stronger gains throughout all sessions and surged by 0.75% versus the Sterling.
Monday was a calm day for the FX market, as hardly any components were moving strongly in either direction against the Euro.
Another selloff that drove worldwide equity markets down was immensely positive for the common European currency on Friday of the last week.
One of the most important data releases took place in Britain on Thursday, where the Bank of England made several monetary policy decisions.
The Euro was building solid ground at the expense of other G10 currencies throughout Wednesday of this week. In spite of some rebound in oil prices, Canadian and Australian dollars used to be the worst performers yesterday, as they dipped by 0.7% and 0.3% versus the Euro, accordingly.
The Euro strengthened against other currencies across the board amid weakness from other regions and commodity price rout. Euro/Sterling surged 0.65% on the back of dropping industrial and manufacturing production in Britain, which is falling due to strong UK currency and lack of economic momentum in the Euro zone and China.
Monday was a silent day for news releases from all observed regions. Still, some currencies were driven by the commodity market and others were awaiting the beginning of an earnings season in the US.
On Friday the common European currency continued to gain ground against all commodity-linked currencies including the Kiwi, Aussie and Loonie, owing to exceptionally low oil prices which are putting pressure on state budgets in Canada, New Zealand and Australia.
Oil prices continued to collapse on Thursday, by reaching the lowest level since late-December 2003. They are putting heavy pressure on commodity-related currencies.
American statistics was exceptionally positive yesterday, with labour market showing solid job gains in December and trade deficit shrinking. However, a key economic event of the day, namely FOMC meeting minutes, was successful in derailing all gains of the Greenback.
The Euro was down across the board on Tuesday, the second trading session of this year. The Yen continued to benefit the most from turbulent equity markets around the world. Investors are seeking for safety amid turmoil and negative statistical data coming from China.
Weakness in the commodities sector pushed Australian, New Zealand and Canadian dollars to the downside against the Euro on Monday, the first working day of 2016.
The Euro bounced back against the Swiss Franc on Thursday of the last week, but at the same time it failed to continue growing with respect to other G10 currencies.
The common currency traded mainly in green on Wednesday; however, tumbling volumes of trading led to little changes for any of the components.
The Euro was reversing earlier gains during the whole trading session on Tuesday. The sharpest losses were registered against all commodity-related currencies including the Aussie, Loonie and Kiwi.
Monday was a rare day of the year when completely no fundamentals were published in all G8 countries except Japan. There were Bank Holidays in Britain, Canada, Australia and New Zealand, as they followed a long Christmas weekend.
The Euro finished its pre-Christmas trading in a mild positive trend versus other G10 currencies. Though, some components registered only a marginal increase of three, four or five basis points.
The common European currency traded down across the board on Wednesday of this week. We saw the Euro losing just 0.08% versus the Swiss Franc, as the EUR/CHF cross is usually considered to be the least volatile component from our review.
The British Pound was a clear loser on Tuesday of this week, following a strongly disappointing public sector borrowing data. EUR/GBP surged by 0.8%, after the report revealed that the UK Government borrowed 14.2 billion pounds in November of this year, up from revised 6.7 billion pounds in October.