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Euro Rose, Supported by Positive Domestic Data

David Meyer

Euro Rose, Ruble and US Dollar Index Fell: Waiting on the Rate Hike

Euro rose by 0.48%

The euro-US dollar pair rose by 0.48% on December 11, 2015, after positive data were released from Germany and Italy. The pair rose to a high of 1.10 before falling to 1.09 towards the end of the day. The pair is expected to be highly volatile in the next week. The US Fed will be meeting to decide on the monetary policy.

Positive domestic data support the currency

The Destatis released the inflation data on December 11, 2015. Germany’s final CPI (consumer price index) on a month-over-month basis came out at 0.1%. The month-over-month WPI (wholesale price index) was -0.2% for November. The food prices saw a rise of 2.3% while the energy prices continued to put downward pressure on the inflation figures. Among other European data, the Italian quarterly unemployment rate was 11.7%. It was below the forecasts of 11.9%.

Impact on the market

Looking at the performance of currency-based ETFs linked to the euro on December 11, 2015, the ProShares UltraShort Euro ETF (EUO) fell by 0.87%. EUO is inversely linked to the euro. In contrast, the Guggenheim Currency Shares Euro ETF (FXE) has a direct relationship to the euro. It rose by 0.37%.

German ADRs (American depositary receipts) trading on US exchanges were on a negative trajectory. Alcatel-Lucent (ALU) fell by 1.8%. Greek shipping company Navios Maritime Holdings (NM) saw a rise of 0.42% while the Finnish company Nokia Oyj (NOK) fell by 1.7% on December 11.

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