Euro falls on back of German data

THE euro dropped to a two-week low against the dollar yesterday slipping 0.2 per cent to $1.3551, after month-on-month German industrial orders fell by 3.4 per cent in December.

The soft data from the Eurozone’s powerhouse economy prompted investors to book profits after the euro’s new year rally. But, German new orders were up by almost 20 per cent compared to December 2009, and the monthly data was an “expected correction” following November’s surge, according to ING’s Carsten Brzeski. “German industry’s positive trend is unlikely to reverse,” he said.