The euro retreats from the gains made before
Investing.com – The euro dipped slightly on Tuesday against the dollar, data from Germany suggesting that the ceos of europe’s largest economy have become less optimistic about the future.
The EUR / USD was trading at 1.1799 at 4:44 AM ET (09:44 GMT) from a high of 1.1819 earlier.
The economic institute Ifo, based in Munich said that its index of business climate, based on a monthly survey conducted on some 7,000 companies, fell slightly to € 117.2 in December, against 117,6 in November.
The reading of December, disappointing forecast from Reuters for a reading at 117.5.
The political uncertainty in Germany has also weighed on the euro. The German social democrats (SPD) decided on Friday to begin negotiations to form a government with the center-right party of Angela Merkel to try to break the political deadlock. Merkel has lost many supporters to the far right in the elections of 24 September, leading up to a federal election inconclusive. Merkel has struggled to get the support it needs to expand its role of chancellor.
In the meantime, the euro appreciated against the pound sterling, with an increase of 0.25% to 0,8823 to achieve.