The Euro spent most of this week little changed due to a lack of data releases for the Eurozone. At the start of the week the Euro did make small advances against the US Dollar and Sterling after global stocks fell ahead of the publication of Wednesday’s highly anticipated minutes report for the Federal Reserve’s July policy meeting.
Midweek the currency was holding close to a six-month high against the US Dollar as uncertainty over the timing of a possible tapering by the Federal Reserve continued to dominate market sentiment. The Dollar came under pressure against the single currency as expectations mount that the Fed will begin to loosen its monetary easing programme in September.
As the week came to an end the Euro edged lower against the broadly stronger US Dollar after the minutes of the Federal Reserve’s latest meeting indicated that policymakers remain divided on when to start scaling back the bank’s stimulus program. However, as the afternoon came about the Euro jumped higher due to positive data.
According to Markit’s Purchasing Managers Index (PMI) manufacturing activity across the Eurozone came in at 51.3 in August, up from the 50.3 level in July. Activity in the services sector advanced to 51.0 from 49.8 in July. Both readings came in far ahead of the median forecasts of economists. A figure above 50 indicates an expansion.
The latest Eurozone consumer confidence data is due for release later in the session and is expected to show an improvement.
Major events next week for the Euro
Tuesday 27th August – German IFO Business Climate data
Wednesday 28th August – Italian Retail sales
German consumer confidence
Thursday 29th August – Spanish GDP
German unemployment rate
Italian consumer confidence
French business confidence
Friday 30th August – Eurozone Consumer confidence
Eurozone unemployment rate
Eurozone inflation rate
Euro Exchange Rates
(As of 13:00 pm GMT)
The Euro is trading against the Pound in the region of 0.8556
The Euro is trading against the US Dollar in the region of 1.3361
The Euro is trading against the Australian Dollar in the region of 1.4850
The Euro is trading against the New Zealand Dollar in the region of 1.7133
The Euro is trading against the Canadian Dollar in the region of 1.4110
The Pound is trading against the Euro in the region of 1.1687
The US Dollar is trading against the Euro in the region of 0.7484
The Australian Dollar is trading against the Euro in the region of 0.6734