- Single currency slides against ‘Buck’ – Other Euro rates remain high
- US Dollar climbs as other rivals drop off – Safe haven demand experiences resurgence
- ECB speeches due tomorrow – US to offer composite PMI
The Euro has worsened considerably against its US rival today, with losses likely stemming from the fact that the US Dollar is experiencing a resurgence in appeal.
On account of the Pound collapsing in value and other markets moving unstably, the US Dollar and the Japanese Yen as safe haven currencies have gone up in appeal considerably.
Looking further ahead, the European Central Bank is expected to bring a trio of speeches tomorrow, while the US will bring an optimistically predicted non-manufacturing composite for June.
(Last updated July 5th, 2016)
The value of the Euro has been relatively high so far today, with a slight gain being seen against the US Dollar and greater advances being recorded elsewhere.
The US Dollar has also been stable on the whole, despite yesterday seeing a decline come from the fact that Independence Day prevented any economic data from being released.
Eurozone Economic News: Euro Gains Recorded after Glut of PMI Stats Arrive
The single currency has been a relatively safe bet so far today, remaining relatively high overall after earlier gains following the release of the morning’s finalised Eurozone composite and services PMIs for June.
These PMIs ultimately had a mixed result; while Spain and Italy saw service sector growth, France and Germany saw minor declines recorded based on the previous printings. For the Eurozone as a whole, the services result dropped off, while the composite figure remained unchanged at 53.1.
In response to the news, Markit’s Chris Williamson said:
‘The Eurozone economy failed to gain momentum in June, rounding off a disappointing second quarter. Faster manufacturing growth was countered by a slowdown in the service sector, leaving the overall pace of expansion of business activity unchanged since May’.
Gains for the Euro on the second day of the week have consisted of a minor advance against the US Dollar (EUR/USD), 0.2% against the Australian Dollar (EUR/AUD), 0.9% against the Pound Sterling (EUR/GBP) and 1.6% against the South African Rand (EUR/ZAR). In terms of losses, the only real decline has been by -0.7% against the Japanese Yen (EUR/JPY).
US Dollar Positive on the Whole after US Economy Reopens for Business
The appeal of the ‘Buck’ has steadily increased since Monday, when the US was essentially placed into limbo because of the 240th Independence Day celebrations.
So far today, advances have been made against peers in the range of 0.3% against the Norwegian Krone (USD/NOK), 0.8% against the Pound (USD/GBP) and 1.3% against the South African Rand (USD/ZAR).
Although no economic data was released yesterday, economists were still active with predictions of how the US economy might develop in the near-term. Wells Fargo Senior Economist Mark Vitner weighed in on the situation, stating:
‘The United States appears to be an oasis in the storm. Growth is solid, albeit unspectacular, which is far better than much of the rest of the world’.
Future EUR, USD Forecast: Eurozone Retail Sales due Shortly along with Later US Orders Data
The next pairing data to watch out for will come from the Eurozone, in the form of a wide range of retail sales printings for May. Forecasts have been mixed across the board, though for the Eurozone-wide printings, losses are expected.
From the US, the first data of the week will consist of the afternoon’s May factory and durable goods orders; only the former field has a gain forecast for its outcome.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1158 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8965 today.
Comments are closed.