The U.S. dollar was boosted overnight thanks to a gloomy economic outlook in the European Union. The euro lost ground thanks to traders worried about the outlook in the Eurozone. Also, the British pound recovered after taking a beating. U.K. Prime Minister Teresa May survived a no confidence vote overnight.
Looking at the benchmark EUR/USD Forex market, the euro fell against the dollar by 0.05 percent, overnight, to trade at $1.14. The dollar gained, beforehand, as the euro hit a 12 day low at $1.138.
Earlier this week, economic data showed that the German economy was close to a recession in the second half of last year. European Central Bank chief Mario Draghi warned, yesterday, that the European Union economy was weaker than previously thought.
Teresa May Survives her No Confidence Vote also supporting the Dollar
In the headlines, U.K. Prime Minister Teresa May survived a no confidence vote called by Labor Party leader Jeremy Corbyn. This vote came after the stunning defeat of the prime minister’s Brexit deal. This vote happened in the House of Commons on Tuesday. Defeat of the deal left the U.K.’s exit from the European Union in a mess. The kingdom is set to exit the EU in just ten weeks.
Looking at the USD/JPY market, the yen gained against the dollar. This market fell 0.18 percent to 108.86 yen. It was up, overnight, 0.5 percent as U.S. stocks gained ground thanks to risk appetite being stronger.