Euro plummeted 0.8% vs US dollar on falling global stocks

The single currency plummeted 0.8% against the greenback yesterday as falling global equities supported risk aversion.

• The dollar firmed substantially against the single currency yesterday, as falling European share prices were followed in the US indices’, prompting investors to shed perceived riskier currencies.
  
• The single currency lost nearly half a percent in just 25 minutes as investors dumped the euro, which closed the day at 1.4222.
  
• Stock markets in Europe were undermined by a combination of ongoing fears that recent bullish sentiment has overcompensated for the economic improvement to date.
  
• The euro fell despite some moderately bright data released in Germany, however this was offset by a rising unemployment rate in the eurozone, which has now hit 9.5%.
  
• The pairing is relatively unchanged this morning as traders await data released in the US this afternoon which should give a good indicator of current economic health.