Euro weakens ahead of important announcements

The euro weakened by 0.73 cents (0.52%) against the US dollar yesterday to finish the day at $1.3866.

• In early trading yesterday, the euro weakened against the dollar as investors became wary ahead of two important announcements by their respective central banks tomorrow. The European Central Bank is set to announce its first ever one-year refinancing operation, whilst the US Fed is due to give its latest monetary policy and interest rate decision. Speculation surrounding these announcements bolstered demand for the safe-haven of the greenback.
  
• The single currency fell despite better-than-forecast German IFO Business Climate data out mid-morning. The index rose this month to 85.9 from 84.2, ahead of analysts’ forecasts of 85.1.
  
• In trading so far today, the euro has resumed its slide against the dollar as investors continue to eye tomorrow’s announcements warily.
  
• There are no major economic releases due in the eurozone today, whilst in the US Existing Home Sales are out at 15.00 BST.