Kantox currency update: euro consolidates awaiting Eurozone PMI data
The euro remained steady near three-week highs on Wednesday, buoyed by a brighter market sentiment after the Chinese GDP eased concerns about a global economic slowdown with the investors bracing for the Eurozone services and manufacturing activity data.
The dollar traded slightly lower before finding support on the positive comments by St Louis Fed president Fed Bullard. The British pound ticked down, under pressure after weaker than expected UK inflation figures.
EUR/USD: hovering around 1.1300. The euro appreciated on risk appetite after the release of Chinese GDP data on Wednesday, but it was capped again at 1.1325, before pulling back to levels right below 1.1300. As at the London market opening times, the EUR/USD is trading at 1.1300.
GBP/USD: flat above 1.3030. The pound ticked up to 1.3065 on Wednesday to ease again after the release of UK inflation data and close the day practically without changes near 1.3040. As at London market opening times, the GBP/USD is trading at 1.3040.
USD/JPY: remains flat at 112.00. The dollar ticked up on Wednesday, with the Japanese yen under pressure with the market on a risk-on mood, although it has been unable to break resistance at 112.15. As at London market opening times, the USD/JPY is trading at 111.90.
In the Calendar Today
Today, in the Eurozone, the Markit Institute will release the preliminary April Manufacturing and services PMI. Business activity in the manufacturing sector is seen contracting for the third consecutive month, a trend suggesting a significant economic deceleration in the second quarter, which might have a negative impact on the euro.
In the US, the focus will be on the retail sales, which are expected to have bounced up in March after having contracted in February. Consumption is a major contributor to the US economy and strong results on the retail sales tend to trigger positive reactions in the USD.
08:00 GMT EZ: Markit Manufacturing PMI – Prel. (Apr)
Prev: 47.5 Cons: 47.9
08:00 GMT EZ: Markit Services PMI – Prel. (Apr)
Prev: 53.3 Cons: 53.2
08:00 GMT US: Retail Sales (MoM) (Apr)
Prev: -0.2% Cons: 0.9%