Tuesday during early deals, the euro showed mixed trading against its major counterparts following several lackluster economic reports released from Europe. The euro advanced to a 4-day high against the dollar, while recovered from a 4-day low against the franc. On the other hand, the euro eased from a new multi-week high against the pound and a 5-day high against the yen.
Germany's consumer price index, or CPI, rose 1% year-on-year in February following an increase of 0.9% in January. The CPI growth picked up for the first time in seven months. Compared with January, the CPI was up 0.6% in February.
Germany's foreign trade surplus widened to EUR 8.5 billion in January from a revised EUR 7.3 billion in December. Economists were looking for a surplus of EUR 9.5 billion. Initially, the December surplus was reported as EUR 6.9 billion.
French trade deficit swelled to EUR 4.55 billion in January from a revised EUR 2.95 billion in December. Economists had forecast a deficit of EUR 3 billion. Initially, the December trade deficit was reported as EUR 2.45 billion.
French manufacturing production declined 4.1% in January from the previous month, following a revised 2.1% drop in December. Economists had expected a monthly decrease of 1.3%
Italy's producer price index, or PPI, fell 2% year-on-year in January. Economists had forecast a relatively slower decline of 0.4% for January. On a monthly basis, total producer prices dropped 0.8%, while the consensus forecast was for a fall of 0.5%.
The euro climbed to a 4-day high of 1.2742 against the dollar in early deals on Tuesday. The next upside target level for the euro is seen at 1.29. The euro-dollar pair was worth 1.2613 at yesterday's close.
The euro, which closed yesterday's trading at 0.9157 against the pound rose to a new multi-week high of 0.9221 by about 2:30 am ET Tuesday. Thereafter, the euro lost ground and the pair is currently worth 0.9167 with 0.914 seen as the next target level.
The UK RICS house price balance, BRC retail sales monitor and the industrial production reports, which were released today likely influenced the pound.
The manufacturing production in the UK dropped 2.9% on a monthly basis in January compared to a revised 1.9% decline in December. Economists had expected a monthly 1.4% fall. The ONS said industrial output slid 2.6% month-on-month, taking the annual decline 11.4% in January. Economists were looking for a monthly decrease of 1.2% and an annual 9.9% fall.
Retail sales in Great Britain tailed off in February after a strong showing in January. The British Retail Consortium reported that same-store sales in February declined 1.8 percent compared to one year earlier. Overall retail sales including new stores were up 0.1 percent. The full year to February same store figure was below the increase of 1.1 percent reported for the year to January.
An index measuring sentiment in the United Kingdom's housing market posted a score of -78.3 in February, the Royal Institution of Chartered Surveyors (RICS) said. That was worse than analyst expectations for a score of 74.5 following a reading of 76.6 in January.
The euro weakened against the yen after hitting a 5-day high of 125.68 at 4:00 am ET Tuesday. As of now, the euro-yen pair is trading at 124.99, compared to Monday's close of 124.74. The near term support level for the pair is seen at 122.4.
A report from Japan's Economic and Social Research Institute showed today that the leading index fell to 77.1 in January from 79.4 in December. Economists expected the index to come in at 77.4. The leading index has been on a declining trend since August 2008.
The euro fell to a 4-day low of 1.4592 against the Swiss franc before bouncing back at 2:50 am ET Tuesday. Presently, the euro-franc pair is quoted at 1.4705, up from 1.4610 hit late New York Monday. If the pair advances further, it may likely target the 1.483 level.
Traders are now likely to focus on the North American session, in which the Federal Reserve Chairman Ben Bernanke is scheduled to speak to the Council on Foreign Relations in Washington at 8:30 ET.
The Commerce Department is due to release its wholesale inventories report at 10 am ET. Economists expect wholesale inventories at the end of January to show a 1% decline.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.