News Index
By Associated FX Analysis Team

Kantox currency update: euro surges on bright Eurozone data; dollar, under pressure

Published May 17, 2017


The euro rallied sharply on Tuesday, buoyed by the Eurozone GBP data, which confirmed that the economy grew at a 1.7% pace in the first quarter, which will add pressure for the ECB to start scaling back its bonds purchasing program.

The dollar has remained bid over the last sessions and the Dollar Index plunged to 6-month lows, weighed by weak U.S manufacturing data and yet another turmoil caused by Trump, this time due to revealing classified information to Russia.

EUR/USD jumps to fresh 6-month highs beyond 1.1100. The euro accelerated its uptrend on Monday, breaking past the recent top – at 1.1020-, to reach levels above 1.1100, buoyed by the strong Eurozone GDP figures and the recent dollar weakness. At London market opening times, the EUR/USD is trading at 1.1115.

GBP/USD remains in range below 1.3000. The sterling’s remained moving within the 100 pip range of the last week, supported above the area around1.2900, with upside attempts capped below 1.3000. At London market opening times, the GBP/USD is trading at 1.2915.

USD/JPY: two-week lows near 112.00. The U.S. Dollar plunged on Tuesday weighed by news reporting that Trump had shared classified information with Russia, and weaker than expected manufacturing data, which have shadowed investors’ expectations of a June rate hike, and driving the dollar to fresh 2-week lows near 112.00. At London market opening times, the USD/JPY is trading at 112.35.

In the Calendar Today

 At 08:30 GMT we will be attentive at the ILO unemployment rate and especially at the average earnings data. In a context of accelerating inflation, wages are becoming more important to maintain consumer spending, and in that sense, a weak reading on average wages might have a negative effect on the pound.

At 09:00 GMT Eurostat will release April’s Consumer Prices Index, which according to preliminary data, accelerated to 1.9% from 1.5% in the previous month. An upward revision of those figures might help the euro to extend its rally.

08:30 GMT       UK: ILO unemployment rate (3M- Apr)
Prev: 4.7%    Cons: 4.7%

 12:30 GMT       EU: Consumer Prices Index (YoY) (Q1)
Prev: 1.9%    Cons: 1.9%


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