The euro fluctuated on Tuesday as investors reflected upon how far a December interest-rate increase by the U.S. Federal Reserve is priced into foreign-exchange markets.
The single currency has remained
little changed since touching a seven-month low on Friday after a jobs
report pushed odds of a December tightening above 70%.
The euro has fallen 5 percent since European Central Bank President Mario Draghi said on Oct. 22 that policy-makers will reassess their monetary stimulus program in December and that they’ve discussed cutting the bank’s deposit rate to encourage inflation.
"If you think
you’re going to get euro-dollar significantly lower, you need to get an
ECB rate cut, a Fed rate hike and some new additional impetus," Kit Juckes, a
strategist at Societe Generale SA in London, said in an interview with Bloomberg.
EUR/USD was last at 1.0727, down 0.22%.
EUR/GBP was last seen at 0.7098, down 0.21%.
EUR/JPY dipped 0.13% to trade at 132.26.
The euro was also impacted by disappointing news from Italy.
Earlier, Istat reported that Italian Industrial Production climbed to 0.2%, from -0.5% in the preceding month. Analysts had expected industrial production to expand 0.5% last month.
