Decline in stock prices, devalues the euro vs the US dollar

The single currency reversed early gains against the greenback following a decline in investor sentiment for "risker" currencies.

• The single currency lost ground on Friday as both the unemployment rate and the CPI flash estimate figures came in below expectations, reminding investors not to over-estimate the pace of the eurozone’s recovery.
  
• In trading yesterday, the euro was able to regain all the ground lost against the greenback, as inflation rates increased from -0.7% in July to -0.2% in August.
  
• The euro has failed to realise these gains agains today, with the single currency currently trading 0.15% lowers, as a decrease in European equity value erodes investment sentiment in the market.
  
• The eurozone unemployment rate was released today at 10:00BST, which revealed that unemployment remained at a high of 9.5% this month, which added selling pressure to the single currency.
  
• In the US, data on the manufacturing industry and home sales is released at 15:00BST.