EUR/USD Below 1.2650 on European Data

The dollar rose the most against the euro in more than a week as signs of growth faltering in Europe contrast with an improving U.S. economy.

The 18-nation shared currency dropped after reports showed industrial production in the region slumped and Germany’s government cut the economic outlook for this year and the next. The pound fell against most of its major peers as a report showed U.K. inflation declined to a five-year low. The yen rose against most major peers on haven demand, while the Canadian dollar reached the lowest since July 2009 as crude oil fell.

“The situation in Europe continues to deteriorate, but the concern is spilling over into the global economy,” said Sireen Harajli, a Mizuho Bank Ltd. strategist in New York. “The dollar continues to benefit in this environment, in our view, and the incoming data continues to support that.”

Bloomberg

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