After a static trading session for the Euro, the common currency approached the close of European trading in the region of 1.3840 against the US Dollar.
A lack of economic reports for the Eurozone limited Euro movement today, and the common currency largely held this week’s gains.
The Euro strengthened against the Pound and US Dollar thanks to unexpectedly strong manufacturing and services data for both the Eurozone and Germany. Yesterday’s upbeat German business climate data also lent the common currency support.
Meanwhile, the ‘Greenback’ experienced modest fluctuations after the release of US services data.
The US services PMI dipped from 55.3 to 54.2 in April. Although the reading remains above the fifty mark separating growth from contraction it was less than the 55.5 expected by economists.
The US composite index also declined, easing from 55.7 to 54.9.
The report showed that staffing levels rose at the slowest rate since mid-2012.
In a statement issued with the figures Markit economist Chris Williamson asserted; ‘The PMI surveys indicate that the US economy is slowing in the second quarter, in terms of both economic growth and job creation. With the exceptions of the government shutdown last October and the weather related disruptions in February, the rate of economic growth signalled by the flash services and manufacturing PMIs in April was the weakest since May of last year.’
It wasn’t all bad news for the US however as the nation’s University of Michigan Confidence index advanced from 82.6 to 84.1 in April, far exceeding an earlier estimate of 83.0.
While next week’s Eurozone reports are likely to have a considerable impact on the Euro’s exchange rate (particularly German retail sales and inflation figures) the US non-farm payrolls report could be a big driver of market movement.
An impressive result would support the case for the Federal Reserve increasing interest rates and could boost the US Dollar, but a disappointing figure could drag the ‘Greenback’ lower.
Similarly, if Germany’s Consumer Price Index exacerbates inflation concerns and ups the odds of European Central Bank intervention a broadly softer Euro could be the result.
Euro (EUR) Exchange Rates
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Currency, ,Currency,Rate ,
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Euro,
Euro,
Euro,
Euro,
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