The Euro to British Pound (EUR/GBP), Euro to US Dollar (EUR/USD), Euro to New Zealand Dollar (EUR/NZD), Euro to Japanese Yen (EUR/JPY) and Euro to Swiss Franc (EUR/CHF) exchange rates all fell in Friday’s European session after Eurozone Composite and Services Purchasing Managers Indexes (PMI) climbed.
The Eurozone Composite measure reached 53.5 in February from 52.6, a little below the 53.0 forecast.
Earlier… The Euro to British Pound (EUR/GBP), Euro to US Dollar (EUR/USD), Euro to New Zealand Dollar (EUR/NZD), Euro to Japanese Yen (EUR/JPY) and Euro to Swiss Franc (EUR/CHF) exchange rates all climbed in Thursday’s European session as investors expected Greece to ask for an extension on its austerity programme from the European Central Bank (ECB).
In addition, dovish Federal Reserve meeting minutes pressures the US Dollar lower.
However, as the session continued Greece’s formal proposal for a six-month extension in its current austerity programme was received negatively by Germany.
Earlier… The Euro to British Pound (EUR/GBP), Euro to US Dollar (EUR/USD), Euro to New Zealand Dollar (EUR/NZD) and Euro to Japanese Yen (EUR/JPY) exchange rates all softened early in Wednesday’s European trading while the Euro to Swiss Franc (EUR/CHF) exchange rate recorded gains.
The Euro to British Pound (EUR/GBP) exchange rate took a rather significant dive when UK employment data beat economists’ forecasts and offered hope that the UK economic recovery is progressing strongly despite rumours of a slowdown.
UK Jobless Claims Change was expected to show a -25.0K reduction in jobseekers in January after December’s -29.7K improvement; however, the actual ecostat managed to surge at -38.6K. In addition, Employment Change rocketed to 103K in the three months through December, doubling forecasts of 50K.
The jump in employment saw the UK Unemployment Rate decline from 5.8% to 5.7% in the last three months of 2014 and Average Weekly Earnings finally recorded some substantial progress, rising from a positively revised 1.8% to 2.1%.
Meanwhile, the US Dollar could be in for some movement on Wednesday with the release of MBA Mortgage Applications, Building Permits and Housing Starts stats data.
Tuesday was a poor day for US domestic data when the NAHB Housing Market Index declined from 57 to 55 in February—a surprise turn of events considering economists had forecast a rise to 58.
NAHB chief economist David Crowe commented: ‘For the past eight months, confidence levels have held in the mid-to upper 50s range, which is consistent with a modest, ongoing recovery. Solid job growth, affordable home prices and historically low mortgage rates should help unleash growing pent-up demand and keep the housing market moving forward in the year ahead.’
However, US Dollar swings could occur later in Wednesday’s session when the US Federal Reserve releases its meeting minutes.
The New Zealand Dollar was offered some support against a host of other currency majors when the latest Fonterra dairy auction showed another increase in dairy prices.
As a commodity currency, the ‘Kiwi’ is extremely sensitive to any changes in the value of its largest export, dairy.
The Japanese Yen to Euro (JPY/EUR) exchange rate was offered a little stability when Bank of Japan (BOJ) Governor Haruhiko Kuroda stated that he didn’t see the central bank expanding monetary stimulus again despite a slump in oil.
Kuroda commented: ‘I don’t think there is any change in the price trend at the moment. That’s why I don’t think there is a need to do something additional. If there is any change in the price trend, we won’t hesitate to adjust policy.’
The BOJ will release its monthly economic report on Thursday, which could see the Euro to Japanese Yen (EUR/JPY) exchange rate fluctuate.
Swiss Franc (CHF) Exchange Rate Unsteady After ZEW Survey Hits Historical Lows
The Swiss Franc declined against a host of other currency majors when the ZEW Swiss Expectations Survey showed investor sentiment plummeted to -73.0 in February after January’s -10.8. Economists suggest the significant tumble is a result of the Swiss National Bank (SNB) removing the cap between the Euro and Swiss Franc (EUR/CHF).
Credit Suisse stated: ‘This nosedive – the biggest monthly drop in the history of the indicator – shows that the financial analysts surveyed are forecasting a much worse performance for Switzerland’s economy than before in the aftermath of the removal of the EUR/CHF exchange rate floor.’
Euro Exchange Rate Forecast: EUR/GBP, EUR/USD, EUR/NZD, EUR/JPY, EUR/CHF
The Euro exchange rate could be in for some hefty fluctuations amid the ongoing Greek negotiations and publication of domestic Eurozone data.
Thursday will see the release of Eurozone Consumer Confidence stats which are expected to show a slight improvement in February, rising from -8.5 to -7.5.
However, Friday could be a more exciting day for Euro trading with German and Eurozone Markit Manufacturing, Services and Composite Purchasing Managers Indexes (PMI) due for publication.
The Euro to British Pound (EUR/GBP) exchange rate is trading at 0.7351. The Euro to US Dollar (EUR/USD) exchange rate is reaching 1.1339. The Euro to New Zealand Dollar (EUR/NZD) exchange rate is residing at 1.5086. The Euro to Japanese Yen (EUR/JPY) exchange rate trades in the region of 135.8175. The Euro to Swiss Franc (EUR/CHF) exchange rate is trending at 1.0712.