Euro Moves up Slightly from Three-Week Low Before Retail Sales, ECB Meeting

The euro traded 0.7 percent from its lowest level in three weeks amid signs that Europe’s economy is worsening as its debt crisis remains unresolved.

Demand for the 17-nation euro was limited before data forecast to show retail sales in the currency bloc decreased for a second month and ahead of an Oct. 4 meeting of the European Central Bank. Australia’s dollar was near a three-week low before Reserve Bank policy makers decide on interest rates today. The U.S. currency slid against most major peers after Federal Reserve Chairman Ben S. Bernanke said the bank will sustain monetary stimulus which tends to debase it. The yen weakened as stocks gained, dimming the allure of haven assets.

“News out of Europe is certainly not going to get a huge amount better overnight,” said Thomas Averill, managing director in Sydney at Rochford Capital, a currency and interest- rate risk management company. “The debt crisis is far from over. We’ve got some more bad headlines to come out of there, which will push euro-dollar lower.”

via Bloomberg

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