Good morning,
The euro is finding its feet against the USD after sinking to a 5-year low of 1.0350 a few weeks ago. Since the low, EUR/USD has gained nearly 3.6%, pushing back above 1.0700 to 1.0724 at time of writing. The shared currency is also gaining against the pound, heading on a downward path towards 1.1700.
Yesterday’s euro strength came after hawkish comments from the ECB’s president Lagarde, who said ‘rates are likely to be positive at the end of Q3’, referring to the interest rate. Germany also saw positive growth in business activity as the German Business Survey posted higher figures than expected.
PMI Data is released today from France, Germany, Europe and the UK. German manufacturing flash estimates have already exceeded the forecasted 54, posting 54.7. Investors will also be watching speeches from the Fed Chairman Powell at 17:20GMT and the ECBs President Lagarde at 19:00GMT. Further comments on potential interest rate hikes or positive outlook on the European economy could drive the euro further.
Have a great day.
Thomas Read, Senior Relationship Manager.
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