Euro Slips Against the US Dollar in Uncertain Period

The euro has depreciated against the US dollar, falling to buying $1.097 this morning from a peak of $1.1 in the early hours of today GMT.

Selling pressures are likely to have increased on the euro, as there is ambiguity over the course of action that the European Central Bank (ECB) will take at their policy meeting, which will take place in Frankfurt tomorrow.

The is despite the positive GDP data that was released yesterday by Eurostat, especially the 1.6% productivity rise year on year in January 2016.

Analysts at Societe Generale believe that risk aversion is failing to support the euro, and it’s trading less like the yen, amid the concerns about immigration and ‘Brexit’.

That gives the ECB a greater chance of driving it lower if they deliver easier policy tomorrow, they have not given up hope of a test or even a break of EUR/USD 1.08, even though it will take a ‘Brexit’ to get EUR/USD to parity this year, the investment bank said.

The UK pound has suffered a turbulent relationship with the greenback over the past 24 hours, this morning GMT falling to buying $1.418, before spiralling upwards to $1.424.

Reviewing the comments from Bank of England Governor Mark Carney yesterday at the Treasury Committee meeting at the UK parliament, Societe Generale analysts said that suggesting financial instability if the UK was to leave the European Union (EU), is not really taking a partisan view.

‘Brexit’ may be the more desired outcome for many British citizens the bank opined, , but it is also likely to make them poorer.

To point that out isn’t to take sides, any more than suggesting that GBP/USD will trade below 1.30 as a result of the UK leaving the EU. 

Germany Increases Manufacturing Turnover by 1.1% for January 

According to the Federal Statistical Office, the German manufacturing sector saw a rise of 1.1% in turnover for January, when compared to December last year.

Despite the upturn, the growth figures for the sector has eased month on month, as for December 2015, as there was a turnover rise of 2.1%, in contrast to November.

In January 2016, domestic turnover increased by 2.2%, business with foreign customers was at the level of the previous month.

Sales to euro area countries were 0.8% below December, and sales to other countries 0.5% above the preceding month’s level.

Compared to January 2015, there has been a rise of 1.5% in real turnover, having been adjusted for annual working day variations.

Domestic sales increased b 1.8%, while turnover from business with foreign customers rose by 1.3%.

Transactions with euro area countries increased by 3.9%, while turnover with other foreign countries declined by 0.6%, year on year.

Mixed Data in Spanish Economy 

Official figures have revealed that 9,443 more companies were created in Spain in January this year, representing a significant rise of 14.7% from the same month in 2015, while 3.017 companies have been dissolved.

While for the fourth quarter of last year, house prices were reduced by a tenth, when compared to the previous quarter.