During the European session several pieces of positive data for the Eurozone boosted the Euro against a bearish US Dollar.
The Euro to US Dollar Exchange Rate is currently trading in the region of 1.3267 as of 13:00 GMT
Firstly, Italian services PMI came in at 48.7 rather than the 46.5 estimate. This was followed by a better-than-expected gain in services PMI for the Eurozone (49.8 instead of 49.6).
According to one industry expert, today’s services data for the Eurozone ‘fuels hope that Eurozone GDP has finally stopped contracting and is on course to eke out marginal growth over the second half of the year. The hope for the Eurozone is that current rising confidence encourages businesses to increasingly pare back their job cutting and become more prepared to invest, and also encourages consumers to spend more.’
Then a Sentix survey of investor confidence in the currency bloc surged from -12.6 to -4.9, significantly better than the increase to -10.0 predicted.
Finally, retail sales in the Eurozone contracted by less-than-forecast in June. Although economists were expecting a month-on-month drop of 0.7 per cent and year-on-year slump of 1.3 per cent, retail sales were actually down 0.5 per cent on the month and 0.9 per cent on the year.
However, Euro gains were limited as a separate report showed that German services PMI didn’t expand by as much as hoped, climbing to 51.3 in July instead of 52.5.
The Euro to US Dollar (EUR/USD) exchange rate hit a high of 1.3300 pence per Euro
After briefly testing the 1.33 Dollar’s per Euro boundary, the European asset lost some of its spark as the North American session began.
The common currency also dipped against the Pound as the British currency was supported by the news that UK services PMI leapt to 60.2 in June, a strong result and one which adds to earlier indications of the UK economy having an upbeat start to the third quarter of the year.
In the hours ahead further EUR/USD movement could occur in response to today’s US ISM non-manufacturing composite report – scheduled for release at 15:00 GMT.
EUR/GBP volatility could be inspired by tomorrow’s UK manufacturing/industrial production reports and NIESR GDP estimate, but Italian GDP and German factory order data will also be influential.
Current Euro (EUR) Exchange Rates
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The Euro/US Dollar Exchange Rate is currently in the region of: 1.3267<
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8644 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4898 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.7067 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7531 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1573 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6708 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5857 >
(Correct as of 13:00 GMT)
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