The euro fell to almost the weakest since November after investor confidence in Germany slumped to the lowest level since 2012, adding to concern Europe may be entering a Japanese-style deflationary spiral.
A gauge of the dollar was at almost the strongest since February as job openings rose to the highest level in more than 13 years before a report tomorrow forecast to show U.S. retail sales grew for a sixth month. German bund yields dropped toward 1 percent on bets the European Central Bank’s stimulus measures are insufficient to boost inflation. Ukraine’s hryvnia fell to a record low as turmoil with Russia deepened. New Zealand’s currency dropped after the housing market slowed.
“The German number today pointed to a weak purchasing-manager index reading coming our way and emphasized a headwind to the primary engine of Europe,” Brad Bechtel, managing director of Faros Trading LLC in Stamford, Connecticut, said in a phone interview. “In light of further sanctions that were recently announced on Russia, which impact the EU as well, all that’s painting a very bleak picture of the euro zone.”