Europe’s single currency managed to eke out gains versus its US counterpart Monday, although movement was watered-down by the absence of macroeconomic data and a wait-and-see stance ahead of the European Central Bank’s monetary policy meeting later this week.
Europe’s single currency staged a modest recovery after clocking near 28-month lows versus the US dollar Wednesday. A sharp intraday turnaround in US Treasury bond yields, dismal US ISM Manufacturing PMI data and help from daily demand coming in at 1.0851-1.0950 .
The US dollar index, calculated by factoring in the exchange rates of six major world currencies, continued to realise higher ground Monday. Despite US banks closing in observance of Labour Day, the index clocked fresh YTD highs beyond the 99.00 handle.
Snapping a two-week bullish phase, the GBP/USD curved lower a few points south of the 2017 yearly opening level at 1.2329 (resistance) last week, set a couple of points beneath a major resistance area at 1.2365-1.2615.
Key risk events today: Spanish Flash GDP q/q; Euro CPI Flash Estimate y/y and Core CPI Flash Estimate y/y; US ADP Non-Farm Employment Change; CAD GDP m/m and RMPI m/m; US Employment Cost Index q/q; Chicago PMI; FOMC Statement, Federal Funds Rate and Press Conference. EUR/USD: Europe’s single currency mildly extended its weekly gains Tuesday, … Continue reading Wednesday 31st July: Dollar holding north of 98.00 as Fed focus takes centre stage.
