Euro Falls for Second Day vs. Dollar

EuroThe euro fell against the US dollar for the second day and erased gains versus the Swiss franc today as investors are less willing to buy the currency amid signs of problems in Europe and concerns of global economic slowdown.


The decline of consumer confidence in Germany had its negative impact on the shared European currency. GfK stated that German consumer confidence fell from 5.3 to 5.2 this month and wrote in the report:


Economic expectations virtually collapsed in August, and in light of this, there has also been a moderate drop in Germans’ income expectations.


The euro also weakened on the speculation European lawmakers will extend the ban on short sales.


The global weren’t very supportive for the euro either as rising unemployment claims worsened sentiment of traders. Jobless claims in the US rose to 417,000 last week from the previous week’s revised figure of 412,000. Economists anticipated decrease to 403,000.


EUR/USD fell from 1.4412 to 1.4377 today as of 17:39 GMT. During the day the currency pair reached the high of 1.4474 and the low of 1.4327. EUR/CHF traded at 1.4437 today after earlier it dropped from 1.1465 to 1.1407.


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Earlier News About the Euro:


* Euro Drops as Europe's Economic Growth Slows (2011-08-16)

* Euro Weakens as Investors Shun European Bonds (2011-08-02)

* Euro Slids for Second Day on Debt Crisis Concern (2011-07-28)

* Euro Posts Weekly Gain After Two Weeks of Losses (2011-07-23)

* Euro Drops as Optimism Caused by EU Summit Wanes (2011-07-22)