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Euro Exchange Rate News: EUR Drops on Poor Eurozone PMIs

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Pound Sterling: GBP Appreciates on Higher UK Manufacturing Output

The Pound has advanced against the Euro and the US Dollar today, mainly on a positive reaction to the latest Confederation of British Industry (CBI) data.

Although UK business optimism has fallen, industrial orders data has been more supportive by showing higher output during July.

Pound Sterling could be further affected by CBI data on Wednesday, when a measure of distributive trades comes out.

This is tipped to show a slowdown in July’s reading, which could cause the Pound to lose its latest gains.

Euro: EUR Slides on Eurozone PMI Stats

The Euro has made a minor loss against the Pound and traded tightly against the US Dollar today; elsewhere, the single currency has declined against peers like the New Zealand Dollar.

This generally poor performance is down to the release of preliminary Eurozone PMI data for July, which has shown a slowdown in overall Eurozone economic activity.

The Euro’s losses from today’s readings could extend in the near-future, when Ifo German confidence data comes out on Wednesday morning.

This is tipped to show sliding levels of German economic sentiment in all fields, so the single currency could fall further against its regular peers on such news.

US Dollar: USD Falls on Disappointing PMI Data

Like the Euro, the US Dollar has struggled today on unsupportive PMI data. This has brought losses against the Pound and other peers, in addition to narrow trade against the Euro.

In the US Dollar’s case, it was PMI flash figures for July, which have shown slowing overall activity and a dip in service sector performance.

The US Dollar might be able to recover on Wednesday afternoon, if oil stock data shows a drop in US reserves.

Lower stockpiles can lead to higher oil prices, which are beneficial to US crude oil exporters.

Australian Dollar: AUD Advances as AU Trade Minister Touts Chinese Reform

Like its antipodean neighbour the New Zealand Dollar, the Australian Dollar has been in high demand today and has risen against the Pound, Euro and US Dollar.

On a quiet data day, AUD has been supported by a statement from Australian Trade Minister Steven Ciobo.

Mr Ciobo has praised Chinese economic development and reforms, adding that this has benefitted the Chinese economy.

The Australian Dollar could rise further against its peers on Wednesday morning if Q2 inflation rate figures show growth as forecast.

A faster pace of inflation will put more pressure on the Reserve Bank of Australia (RBA) to consider raising interest rates, an outcome long-awaited by AUD traders.

New Zealand Dollar: NZD Appreciates on US Dollar Weakness

The New Zealand Dollar has steadily risen against the Pound, Euro and US Dollar today, mainly due to present US Dollar weakness.

With a lack of NZ economic news to influence NZD, movement has instead been caused by a weak USD raising risk sentiment and making the New Zealand Dollar more desirable.

Present NZD gains may slip this evening if June’s NZ trade balance shows a reduction of May’s surplus as some analysts expect.

Canadian Dollar: CAD Unsettled by Crude Oil Price Slide

The Canadian Dollar has declined against the New Zealand Dollar and Australian Dollar today, in addition to trading in a narrow range against the Pound, Euro and US Dollar.

This lacklustre performance comes from a dip in global crude oil prices which has unsettled Canadian oil exporters and lowered confidence among CAD traders.

During the current Canadian data shortage, the next source of CAD movement will likely be due to the US Dollar.

A strengthening of the US currency could push the Canadian Dollar down, while a sudden US Dollar decline could raise demand for CAD.

 

Further Reading

 

Coronavirus panic drives US dollar strength

Currency rates were extremely volatile last week as the coronavirus situation worsened day by day with various countries implementing ever-tougher measures to stop the spread of the disease.

Last update: 23 Mar, 2020

Coronavirus spread fears linger – USD strong – AUD at 11 year lows

This week the US Dollar was touching three-year highs when valued against a basket of major currencies. The greenback’s traditional role as one of the safe-haven currencies is helped by a domestic economy that is largely immune to the threats of the coronavirus.

Last update: 22 Feb, 2020

Coronavirus unnerves currency markets

The strong start to the year for “risk-on” currencies is already a distant memory.

Posted: 3 Feb, 2020

  

Posted to: News

 
 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.
 

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