The Euro fell against the U.S. Dollar for the first time in three weeks on data indicating that world economic growth has slowed down along side the deepening debt crisis is the Euro zone. The news prompted flight from risk, causing the Yen to gain against the majority of its currency market peers.
The Yen was also supported by lackluster reports out of China showing a decline in the country’s exports. Japan’s currency advanced versus the Euro on speculation this week’s releases will confirm that the Euro-zone’s economy shrunk for the second consecutive quarter. However, the Euro’s losses were limited as those who trade Forex remain hopeful the European Central Bank will purchase debt in order to lower Spanish and Italian borrowing costs and stem the debt crisis.
The Australian Dollar slipped from the highest level it has traded at in over four months after China’s reports disclosed a decline in exports, thereby raising the possibility that the South Pacific nation’s exports will also slow down. Metrics showing China’s exports only gained 1 percent in June outweighed the Australian central bank’s decision to augment the 2012 growth forecast.
Other current exchange news revealed that the Canadian Dollar rallied against the U.S. monetary unit for a fifth consecutive week amid an increase in crude oil prices and on the likelihood demand for Canada’s natural resources won’t diminish. The Loonie remained strong despite disappointing employment reports for July.