The Euro struggled on Wednesday after German business confidence fell more than analysts forecast in September as economic and political risks in the euro area increase.
The outlook doesn’t look great, Europe’s largest economy contracted in the second quarter and euro-area growth stalled as international political tension and stubbornly high unemployment sapped sentiment. The risks prompted the European Central Bank this month to say it’ll be more active in adding stimulus to the euro area by starting asset purchases, further weakening the currency.
Yesterday Mario Draghi said the ECB will keep its monetary policy “accommodative” for as long as needed and he will do everything it can to avoid the euro-zone going into deflation.
Draghi also stated that monetary policy alone cannot bring Europe back to growth. He stated that he doesn't see a risk of deflation and ensured unemployment is the largest concern to Europe.
The Dollar gained against a host of its major counterparts during yesterday’s session after new home sales hit a six year high. Sales of new single family homes jumped 18% in August to an annual rate of 504,000. This is the second straight month of gains, with July’s data revised upwards to show a 1.9% increase compared to the previously reported 2.4% fall.
Helped by the housing figures, the Dow Jones Industrial Average has edged up by around 9 points, although investors are still cautious given concerns about the global economy, and the US air-strikes against Isis in Syria.
13:30 BST – USD - Durable Goods Orders m/m
13:30 BST – USD - Unemployment Claims
14:40 BST - GBP - Bank Of England Governor Mark Carney Speaks
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