After Federal Reserve Chairman Ben Bernanke asserted that: ‘If the incoming data are broadly consistent with this forecast, the committee currently anticipates that it would be appropriate to moderate the monthly pace of purchases later this year’, the Euro plunged against a broadly strengthening US Dollar.
The Euro Exchange Rate was in the region of 1.3216 against the US Dollar as of 10:40 GMT
The common currency extended declines during the European session, touching a low of 1.3192 against its US counterpart despite manufacturing and services data for the Eurozone beating estimates.
Markit’s manufacturing PMI for the currency bloc rose from 48.3 to 48.7 in June, while services PMI climbed from 47.2 to 48.6.
A composite index based on the PMI of both industries advanced to 48.9 this month from 47.7 in May, a 15-month high.
Although the figures still remain below the fifty mark which separates growth from contraction, they are a significant improvement.
In a statement issued with the report Markit’s Chief Eurozone Economist Chris Williamson asserted: ‘The flash PMI indicates that the Eurozone contracted again in June […] but there are reassuring signs that the downturn is continuing to ease […] Euro area policymakers will no doubt be encouraged by these improving indicators, suggesting the ECB will see no need for any further action in the near term.’
The Euro to Pound Sterling (EUR/GBP) Exchange Rate hit a low of 85.14 pence per Euro
There was also positive news for Germany, as the nation’s services industry grew at the most rapid pace for four months in June, surging from 49.7 to 51.3 and taking the gauge back above the 50 mark.
Manufacturing in the Eurozone’s largest economy however contracted by more than expected, with the index easing from 49.4 in May to 48.7 in June.
After the data was released one industry expert noted: ‘High unemployment and still-weakening housing markets will also keep domestic demand in many Eurozone countries subdued. At the same time, the recent weakness in the Chinese manufacturing PMI is a reminder that a strong Eurozone export recovery is unlikely either.’
Euro movement was limited as investors await news from today’s gathering of Eurozone finance ministers.
Additional fluctuations may also occur as a result of US housing and employment data.
Current Euro (EUR) Exchange Rates
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3216 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8543 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4368 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6930 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7571 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1705 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6960 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5908 <
(Correct as of 10:40 GMT)
Comments are closed.