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LONDON - 4 April 2019: The euro remained stuck near a one-month low on Thursday as more signs of weakness in the German economy detracted from optimism about U.S.-China trade talks and a softer Brexit.
The euro has remained in a range of $1.12-$1.16 in 2019 despite a slowdown in the euro zone economy that has prompted new stimulus from the European Central Bank.
The euro began to rise at the start of April amid tentative signs of economic recovery and news that talks on trade between the world’s two biggest economies appeared to be making headway. But caution returned on Thursday after data showed German industrial orders dropped in February.
The euro was trading at $1.1235, flat on the day. It has fallen in six of the previous eight sessions.
“While the euro will receive no support from the interest rate side, the better equity environment could prove positive. The currency looks quite well supported near $1.12 today, but may struggle at $1.1250/80,” ING analysts said.
Investors were focused on minutes from the ECB’s March meeting — especially for details on the ECB’s plans to issue new cheap loans to banks and a debate about tiering interest rates.
In addition to optimism about U.S.-China trade negotiations, hopes of a softer British exit from the European Union have weakened the appeal of defensive assets. The safe-haven yen touched a two-week low of 111.575 yen against the dollar late on Wednesday.
The lower house of the British parliament on Wednesday approved legislation that would force Prime Minister Theresa May to seek a Brexit delay to prevent a departure on April 12 without a deal.
The pound last stood at $1.3180, up 0.2 percent on the day.
Positive risk sentiment this week has helped boost the commodity-linked Australian and New Zealand dollars.
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