Eurozone

Forex News – Eurozone PMIs beat expectations on periphery strength; euro gains

Posted on December 16, 2014 at 2:11 pm GMT

The flash Markit Purchasing Manager Indices (PMIs) for the Eurozone were released today and they were stronger-than-expected, at least on an aggregate level. The Eurozone composite flash PMI came in at 51.7 compared to expectations of 51.5 and a 51.1 prior number. Manufacturing PMI was at 50.8 compared to 50.1 the previous month and Services PMI was at 51.9 versus 51.1 in November. The composite PMI for France improved at 49.1 in December compared to 47.9 in November, whereas the [..]

Forex News – Weekly Outlook – US nonfarm payrolls, PMIs and ECB all in focus

Posted on September 26, 2014 at 12:57 pm GMT

All eyes will be on US nonfarm payrolls which are due on Friday as US employers are expected to have accelerated hiring in September and the unemployment rate is forecast to stay steady 6.1%, matching the lowest level since 2008. Nonfarm payrolls are expected to rise to 195,000 this month compared to August’s 134,000. Also from the US, final manufacturing and services PMI releases will be closely watched to gauge how the world’s largest economy is doing. The ISM index [..]

European Session – Euro vulnerable after weak data, dollar boosted by upbeat US GDP

Posted on August 28, 2014 at 1:38 pm GMT

The euro was weak as data from the Eurozone was disappointing, with falling consumer and economic confidence and German inflation numbers being soft. Eurozone sentiment surveys were overall weak and German CPI was flat in August, in line with expectations after a 0.3% rise the previous month. Economic morale in August was the worst since December 2013, falling more-than-expected to 100.6 from a previous revised 102.1 in July. After early attempts to breach the key 1.3200 level, the euro fell [..]

Forex News – Eurozone economic morale worsens in August to 8-month low

Posted on August 28, 2014 at 11:23 am GMT

A slew of data from the Eurozone today were not very inspiring as they did not provide optimism for the region’s economic recovery. Economic sentiment surveys for the 18 countries in the euro-area were overall soft. According to the European Commission, economic morale in August was the worst since December 2013, falling more-than-expected to 100.6 from a previous revised 102.1 in July. Forecasts for the index were for a drop to 101.5. A main catalyst for the decline was a [..]

European Session – Dollar weaker after US jobless claims hit 6-week high

Posted on August 14, 2014 at 1:11 pm GMT

The euro was resilient despite a run of disappointing Eurozone data today which showed the region’s economy stalled in the second quarter of the year. A surprise contraction in Germany and weakness in the French economy dragged overall gross domestic product figures. The Eurozone was expected to grow by at least 0.1%, a slightly slower rate than a prior 0.2%. The zero growth rate raised concerns about the state of the economic recovery in the 18-nation region, which is likely [..]

Asian Session – Yen weaker after Japanese data, euro under pressure ahead of GDP

Posted on August 14, 2014 at 7:00 am GMT

The yen weakened for a second day against the dollar after another run of weak Japanese data. An unexpected plunge in new machinery orders from Japanese companies raised concerns about Japanese businesses’ appetite for investment. Orders rose less-than-expected by 8.8%, well below the 15.3% gain forecasted. The weak data increases speculation that the Bank of Japan might have to provide additional stimulus, which would not be helpful for the yen. The dollar inched up to a high of 102.64 yen, [..]

European Session – Sterling falls to 8-week low against dollar

Posted on August 4, 2014 at 1:53 pm GMT

The main economic data out of Europe today included UK construction PMI and Eurozone Sentix investor confidence data although the releases did not move the euro or sterling much. Data showed that house construction in the UK rose last month at the fastest rate since November 2003. Construction PMI rose to 62.4, beating expectations of 62.0. Despite the upbeat data, sterling fell to as low as 1.6813, a new 8-week low against the dollar. The euro climbed to a new [..]

Forex News – German IFO index slips to 9-month low on economic slowdown, geopolitics

Posted on July 28, 2014 at 1:48 pm GMT

The surprise drop in the German IFO business confidence index confirmed some worries that the Eurozone’s largest economy was going through a soft patch. Although analysts were expecting a slight fall in the index compared to June’s levels, the drop in the end was much more severe and it led the business climate index to a 9-month low of 108 compared to 109.7 the previous month. Both the current conditions’ index as well as the expectations’ index dropped by 1.9 [..]

European Session – Euro under pressure over Portuguese bank concerns

Posted on July 10, 2014 at 12:49 pm GMT

Eurozone and concerns over the banking sector in Portugal placed the euro back under pressure as concerns rose over the health of Portugal’s largest listed bank – Banco Espirito Santo. Also raising concerns over the Eurozone periphery were data showing the steepest drop in Italian industrial output in almost two years. Italian industrial production fell 1.2% m/m and –1.8% y/y while in France, it fell –1.7%m/m and –3.7%y/y. The euro was down 0.2% versus the dollar to test the key [..]

Asian Session – Dollar gains versus yen while the euro holds its ground

Posted on June 4, 2014 at 6:32 am GMT

The dollar gained against the yen on the back of rising treasury yields, while the euro held relatively well despite weaker-than-expected inflation numbers out of the Eurozone. The dollar reached a 1-month high versus the yen at 102.76, as the yield on the 10-year Treasury bond in the US reached as high as 2.60% – its highest for 2 weeks. This represented a sharp and significant move from the 11-month lows around 2.40% the yields had reached only the previous [..]

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