The Euro to US Dollar (EUR/USD) exchange rate advanced back above a 2-month high on Wednesday due to the release of a weaker-than-forecast US jobs report. Against the Pound (EUR/GBP), the single currency strengthened by more than 0.80% as investors turned their attention to Thursday’s UK general election. Against the Canadian Dollar (EUR/CAD), the Euro was higher as optimism grew that a deal will be reached between Greece and its creditors.
The Euro to US Dollar (EUR/USD) Exchange Rate Hit A Session High Of 1.1344
The US Dollar extended its losses against the Euro, Pound Sterling and other major currencies after economic data showed that US non-farm private employment rose by a less-than-forecast level in April, adding to fears that the US economy is faltering.
According to the report released by ADP payroll processing firm, private employment increased by 169,000 last month, well below expectations for an increase of 200,000. In the preceding month, the number of jobs created was 175,000.
‘Fallout from the collapse of oil prices and the surging value of the US Dollar are weighing on job creation,’ said Mark Zandi, chief economist at Moody’s Analytics.
Also weighing upon the US Dollar was data which showed that weekly mortgage applications declined by 4.6% in the week ending on May 1.
The Euro to Pound Sterling (EUR/GBP) Exchange Rate Hit A Session High Of 0.7433
The Euro to Pound Sterling (EUR/GBP) exchange rate advanced to its best level since the first week of February as investors shrugged off better-than-forecast UK Services PMI data and instead focused upon Thursday’s general election.
With the outcome of the vote far from clear, nerves are growing as to what will happen. Will there be a coalition? What form will it take? Will a minority government be formed?
That uncertainty is set to send the Pound sliding throughout Thursday and Friday’s sessions.
The Euro to Canadian Dollar (EUR/CAD) Exchange Rate Hit A Session High Of 1.3601
The Euro to Canadian Dollar (EUR/CAD) exchange rate also strengthened as the single currency was supported by optimism that Greece will meet its payment deadlines successfully and reach a deal with its creditors.
Athens managed to pay a €200 million interest payment to the International Monetary Fund (IMF) earlier in the session.
Even a stronger-than-forecast Canadian PMI and higher oil prices was unable to send the ‘Loonie’ higher.