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Euro US Dollar (EUR USD) Exchange Rate Trends in a Tight Range after Mixed US Manufacturing Stats

  • Euro movements mostly positive – Gains seen against most regular peers
  • Earlier Eurozone data disappointing overall – Manufacturing PMIs fell in July
  • US Dollar generally stable after US manufacturing news – Slight decline seen for ISM printing
  • Wave of Eurozone data due this week – US to bring Fed speech and spending data

The Euro has been moving in line with the US Dollar today, with both the Eurozone and the US putting out manufacturing stats for July.

The strength of the US Dollar of late has stemmed from domestic optimism, particularly with regard to week’s payrolls stats.

Eurozone Economic News: Euro remains in Demand despite Falling PMI Printings

The value of the Euro has remained consistently high recently, despite the notable handicap of falling domestic data for the Eurozone concerning its manufacturing industries.

Notably, with the exception of France (which is in a state of contraction), major printings such as the German and Eurozone-wide stats for July have fallen. In a somewhat supportive development, only Greece has actually seen a dip into contraction, which is not an unusual development.

Other Eurozone data of note has come from Spain, where new car sales and business confidence in July have fallen slightly compared to previous printings.

Gains for the Euro of late have included 0.3% against the Japanese Yen (EUR JPY), 0.6% against the Canadian Dollar (EUR CAD) and 0.9% against the Australian Dollar (EUR AUD). Meanwhile, losses have been made up of a minor slip against the US Dollar (EUR USD) and -0.3% against the Swiss Franc (EUR CHF).

US Dollar Holds the Line against Uncertain July Manufacturing Outcome

The value of the US Dollar has actually increased over the course of the day, which is at odds with the outcome of the latest US ecostats.

While the Markit manufacturing PMI for July has risen from 51.3 to 52.9, the ISM manufacturing PMI for the same period has seen a reduction take place from 53.2 to 52.6.

In a comment attached to the Markit version of the data, the company’s Chief Economist Chris Williamson said;

‘The stronger manufacturing PMI survey data for July fuel hopes that the sector will act as less of drag on the economy in the third quarter after a disappointing first half of the year. Job creation has also picked up, hopefully in a sign that producers are seeing a brighter picture, coping with a strong Dollar and having put the worst of the energy sector’s restructuring behind them’.

Among the US Dollar’s many gains recently have been advances of 0.6% against the Australian Dollar (USD AUD), 0.4% against the New Zealand Dollar (USD NZD) and 0.5% against the Canadian Dollar (EUR/CAD).

US coins and notes

Future EUR USD Forecast: Glut of Eurozone Stats due Wednesday, Fed Speech out Tomorrow

The present week still holds a number of notable economic announcements for both the Eurozone and the US, starting off with tomorrow’s Fed speech from official Robert Kaplan.

Following on from this on a mainly-US data day will be the nation’s personal income and spending results for June; expectations have been for a reprint at 0.2% for the former field and a dip from 0.4% to 0.3% for the latter.

Following on from this on Wednesday morning will be a wide range of Eurozone economic announcements, covering composite and services PMI stats in July as well as retail sales figures for June.

Current EUR, USD Exchange Rates

The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.1179 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.8949 today.