A slump in German industrial orders in November and a drop in euro zone consumer inflation expectations reinforced bearish views of the euro as the U.S. data also helped push the single currency to a nine-year low, for a fifth day of losses. The euro wallowed near a nine-year low on Friday on growing expectations the European Central Bank will embark on quantitative easing, while the dollar held firm before U.S. jobs data that could cement the case for a rate hike by the Federal Reserve. ECB President Mario Draghi said the bank’s Governing Council stands ready to take unconventional measures if needed to stem a prolonged period of low inflation. The euro stood at $1.1792, having hit $1.1754 on Thursday as traders grew more convinced that the ECB might start buying euro zone sovereign debt as soon as this month. The dollar was little changed at 119.48 yen, having come back from a three-week low of 118.05 struck on Tuesday when risk aversion favoured the safe-haven Japanese currency. Sterling stayed near an 18-month low on Thursday, as it suffered from a mix of broad dollar strength, weaker UK growth prospects and political uncertainty. The Canadian dollar, which retreated more than 1.5 percent since the new year to 5-1/2 year lows, closed at C$1.1836 to the greenback, or 84.49 U.S. cents. That was weaker than Wednesday’s finish of C$1.1820, or 84.60 U.S. cents. Providing another source of relief for still wary global markets, crude oil prices held their ground after a 10 percent loss earlier in the week. U.S. crude oil gained 40 cents to $49.19 a barrel after plumbing a 5-1/2-year low of $46.83 on Wednesday.
Read the full report: FX Daily