Currency Buzz: Euro Bounces From Two Month Lows, Greece Vote Eyed

capital market | Mumbai |

Currency Buzz: Euro Bounces From Two Month Lows, Greece Vote Eyed

Euro recovered from a two month lows today as the victory of Barack Obama in the keenly contested US presidential election firmed up the sentiments in global asset markets. Commodities and stocks edged higher and Euro also rose despite weak economic data. The single currency had tested lows of 1.2764 against the dollar in the last session but recovered well above 1.2800 levels today. 

However, the retail sales in the euro area decreased after recording a modest increase in the previous month, data released by statistical office Eurostat showed Wednesday. Retail sales volume decreased 0.2% month-on-month in September, reversing the previous month's 0.2% rise. Sales of non-food products dropped 0.6% sequentially, while sales of automotive fuel in specialized stores slipped 2%. 

Germany independent council of economic advisers were less optimistic than the government on the economy's outlook, according to the council's latest forecasts. The council of the so-called 'wise men' predicts the gross domestic product to grow 0.8% in 2012 and 2013, while the government forecasts the economy to grow 1% next year, following a 0.8% growth this year.

Euro had slipped sharply earlier in the week as sentiments turned nervous ahead of the US Presidential election. The currency is quoting at 1.2815 against the US dollar right now and could find it difficult to move on as the initial burst of enthusiasm following the Obama win is wearing off. The sentiments are also stretched ahead of a critical Greece parliament vote on further austerity measures. The vote is coming out tonight and could turn out to be nasty one if government fails to push through further reforms.

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