The euro came under pressure on Wednesday after initial gains.
In the afternoon, the common currency, the euro, traded at $ 1.2121. The course was lower than on Tuesday evening.
Meanwhile, the Swiss franc tends to be weak. The euro has risen above the CHF 1.10 mark for the first time since the fourth quarter of 2019 and is currently trading at CHF 1.1019 – the high was 1.10575. The US dollar has also gained further ground, slowly targeting the 0.91 mark at CHF 0.9089. The weakness of the franc is explained by its position as a safe haven. In view of the slowly improving prospects, safe havens are currently less in demand.
Robust economic data only supported the euro temporarily in the morning. In the morning it became known that the German economy developed slightly better than previously known in the fourth quarter of 2020. In the largest economy in the euro zone, the gross domestic product rose by 0.3 percent in a quarterly comparison, after growth of only 0.1 percent had previously been reported.
The euro fell noticeably in the afternoon. Robust data from the US housing market also contributed. Sales of new houses in January rose much faster than expected. Robust economic development in the US is also boosting demand for the US dollar.
For other major currencies, the ECB set the reference rates for one euro at 0.86030 (0.86308) pound sterling and 128.69 (127.98) Japanese yen. The troy ounce of gold (31.1 grams) was trading at $ 1,791 in London that afternoon. That was about $ 14 less than the day before.