Euro Pressured As Weak US Consumer Data Quelled Risk Appetite

Euro Pressured As Weak US Consumer Data Quelled Risk Appetite

For the 24 hours to 23:00 GMT on Friday, EUR declined 0.37% against the USD and closed at 1.3325, as downbeat consumer sentiment data in the US turned investors away from riskier assets and go long on the safe-haven dollar.

In the US, according to a report released by Thomson Reuters and the University of Michigan, the preliminary reading on the Consumer Sentiment Index for January stood at a reading of 71.3 in January, hitting its lowest level since December of 2011 and compared to the final reading of 72.9 recorded in December. Market had expected the index to rise to a reading of 75.0 in January.

Moreover, Eric Cantor, the House Majority Leader, stated that Republicans would take up a bill this week to extend the US debt ceiling for three months in an attempt to push the deadline and force the Senate to pass a budget.