![]() ![]() The upcoming week's trading could be influenced by fresh employment and economic growth statistics from the UK. Key Pound to Euro and Dollar Rate Forecast: Risk Events Next Week Persistent concerns about the slow recovery of Europe's biggest economy continue to pressure the single currency. Instead of the anticipated zero growth, there was a 0.2% decrease following April's 0.3% growth. However, by the week's end, Germany's industrial production took a surprising downturn. Offering a slight reprieve for the Euro, German factory orders significantly exceeded expectations, with a robust 6.4% rise in May, outperforming the modest forecast of 1.2%. The figure for June was downgraded to 52.0 from a preliminary 52.4 and May's 55.1.ĭespite remaining above the 50-point mark, indicating expansion, the increase was marginal, marking the lowest figure since January. Moreover, the overall trade surplus shrank to its smallest since December, sparking worries about the health of Germany's economy among EUR investors.ĭuring midweek, the Euro's value took another hit due to weaker-than-predicted service PMIs. However, the ECB's dedicated efforts to curb inflation helped limit further depreciation.Īdding to the Euro's struggle was Germany's unexpected underperformance in trade.Ĭontrary to expected growth of 0.3%, exports from Europe's economic powerhouse declined by 0.1% in May. ![]() This caused a dip in the value of the Euro. Global sectors reflected that factory activity in the Eurozone shrank at the fastest rate in three years, reaching its lowest point since June 2020. The Euro (EUR) faced mounting tension as a wave of negative data overshadowed the assertive stance of the European Central Bank (ECB). Euro (EUR) Exchange Rates Weighed by Underperforming Eurozone Economy Nevertheless, a fall in the unemployment rate offered some relief, implying a continued tight labour market. The end of the week brought volatility for the 'Greenback' as the non-farm payrolls data for June were well below expectations at 209,000, against the predicted 225,000, causing the USD to lose ground against its major counterparts. This led investors to factor in additional rate hikes from the Fed, leading to a downbeat market mood. However, by Thursday, the USD rallied, fuelled by a significant surge in the ADP employment figures and a higher-than-predicted ISM services PMI. Meanwhile, the minutes of the Federal Open Market Committee (FOMC) released later in the week didn't stoke much enthusiasm in the USD, although they did reinforce the possibility of more interest rate increases by the Federal Reserve. ![]() Market activity for the 'Greenback' on Tuesday was muted due to the Independence Day holiday. The US Dollar (USD) started the week on a low note, as the ISM manufacturing PMI unexpectedly dipped to a level unseen since May 2020. US Dollar (USD) Exchange Rates Ends Week on Back Foot The Pound to Euro (GBP/EUR) exchange rate traded at 1.17075. Last week's session saw the Pound Sterling (GBP) strengthen against the Euro (EUR) and US Dollar (USD), as persistent interest rate hike bets bolstered the British currency.Īs markets closed, the Pound to Dollar (GBP/USD) exchange rate traded at around US$1.28392. ![]()
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