EUR/USD Drops to 1.3365 as Confidence Sags

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.”


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