The Euro declined against most of its foreign exchange trading counterparts after the E.U.’s Statistics Office reported that unemployment in the Euro region rose to a record 12% in February while January’s data was revised up from 11.9 to 12%. This bolstered concerns that the region’s economy will have a tough time emerging from the recession. The shared currency also weakened against the U.S. Dollar as data confirmed that the purchasing manager index of manufacturing stayed within contraction range and slipped from 47.9 to 46.8 last month. The Euro remained under pressure as investors continue to worry about Italy’s inability to form a government as well as losses imposed on Cypriot depositors as part of the bailout terms.
Elsewhere in the South Pacific, the New Zealand Dollar rallied following a release which indicated that the nation’s commodity export prices went up 7.4% in March, which was the most in over three years. The Australian Dollar also advanced as the Reserve Bank of Australia left benchmark interest rates unchanged.
In other currency trading news, the British Pound sustained the biggest decline in three weeks after an announcement showed that the U.K.’s factory output shrank in March. This bolstered speculation that the nation is moving towards another recession.
Canada’s Dollar traded at a five-week high versus its American counterpart subsequent to news revealing that China’s economy expanded. And since China is the largest consumer of energy and metals in the world, the metrics also benefitted the monetary units of commodity-exporting countries. The Loonie pared gains after commodity prices erased earlier increases.