Euro Suffer a Morning Fall Against the US Dollar

The euro has taken a fall to the US dollar this morning, after surging in value to the greenback throughout the course of yesterday afternoon.

At around 5PM GMT, the euro peaked at buying $1.076, before steadily falling in the evening time, and the early hours of this morning.

Currently the euro is 1.067, and has not climbed above the 1.073 mark so far today.

The backdrop of the movements mainly surround recent announcements, as the US Federal Reserve has strongly hinted that an interest rate rise will be agreed at their meeting next month.

Yesterday, Cleveland Federal President Loretta Mester openly said that the two tests that have been laid by the reserve, have been met  for a rate rise.

European Central Bank  Minutes Show Inflation Concern

A release of the minutes of the October meeting between the European Central Bank’s (ECB) policymakers, revealed that bank is likely to keep missing their inflation targets.

They now anticipate that the timeframe to achieve the desired rate of 2% inflation, is now almost certain to be pushed back.

The minutes also reiterated the speech made lat week by Mario Draghi, the ECB president, in that trends beyond their control are continuing to keep inflation at a low level.

The European Commission’s investment plan was also criticised, the so called ‘Juncker Plan’ where EUR 315 billion will be invested as part of an economic stimulus, is lacking momentum they opined.

A policy re-evaluation is likely to go ahead at their next meeting on December 3.

German Producer Prices Fall

Inflation in the euro area was handed some more bad news, as figures from the German Federal Statistical office disclosed that producer prices for industrial products has fallen by 2.3%.

This was slightly lower than the minus score of 2.1% that was recorded for September.

Energy prices decreased the most by a year on year 6.5% for October, that was followed by reductions in consumer goods and intermediate goods by 0.5% and 1.9% respectively.

In contrast, prices of capital goods rose by 0.6%, and prices of durable consumer goods by 1.3%.

Euro Dips Against the UK Pound

The euro has endured a roller coaster ride against the UK pound over the past 24 hours,  peaking of just over the £0.702 mark mid way through yesterday afternoon.

Overnight the euro maintained a competitive value against the pound, reaching just under the 0.702 mark this morning, before a tumble down to 0.698 by 10AM GMT.

Only slightly ahead of how the euro fared against the pound at the same time yesterday.

Asian Currencies Fight Off Euro Advance

The Japanese Yen has gained on the euro since yesterday morning, when the euro hovered around the Y132 mark.

Since 6AM GMT, the euro has fallen from Y131.7 down to below Y131.2.

There was a similar patter with the Chinese Yuan, as the euro peaked at RMB6.87 yesterday afternoon, before slowly depreciating to RMB6.81 this morning, and then skipping up to RMB6.82.

Gold and Silver Move Upwards on the Euro

As the euro has declined against major currencies over the last day, gold and silver have both appreciated against it.

An ounce of gold is currently EUR1.014, and silver EUR 13,41, a rise to the euro by 0.61%, and 0.92% respectively.