Euro US Dollar Exchange Rate Climbs to Two-Month High Following Strong Eurozone PMIs

Pound Firms on Robust Economic Releases

The Pound (GBP) traded with modest gains at the end of last week’s session following the publication of upbeat UK data.

While the UK’s latest retail sales and PMI figures both printed above expectations on Friday, Sterling still struggled to shake off some investors’ bearish perceptions of the currency, limiting its upside.

Turning to this week’s session, in the absence of any major UK data releases, GBP investors will likely look to domestic coronavirus and political developments for fresh impetus.

Euro Surges as Eurozone PMIs Beat Expectations

The Euro (EUR) closed last week’s session on a high, as EUR investors welcomed the publication of the Eurozone’s latest PMI figures after they surprised to the upside.

April’s preliminary figures saw growth in both the Eurozone’s manufacturing and service sectors print above expectations, bolstering hopes that the bloc will return to growth in the second quarter of 2021.

Coming up this morning, the publication of Germany’s latest business climate index may fail to support the Euro as business morale only improved slightly in April and came in below forecast.

US Dollar Stumbles amid Falling Yields

The US Dollar (USD) was on the defensive on Friday, with the ‘Greenback’ facing some broad selling pressure following a drop in US Treasury yields.

These losses were later tempered after the latest US Markit PMI reported the US services sector expanded at a record pace in April.

Looking ahead, the focus at the start of this week’s session will be the publication of the latest US durable goods figures. Will a rebound in goods orders last month help to bolster the US Dollar?

Canadian Dollar Dented by Coronavirus Concerns

The Canadian Dollar (CAD) fell back on Friday, with CAD investors expressing concern over Canada’s recent coronavirus resurgence, particularly in light of the news that variant behind India’s recent dramatic surge has been detected in the country.

Australian Dollar Firms amidst USD Weakness

After fluctuating on Friday, the Australian Dollar (AUD) opened this week on strong footing, rallying in overnight trade as the broad weakness of the US Dollar bolstered the appeal of the risk-sensitive ‘Aussie’.

New Zealand Dollar Buoyed in Upbeat Trade

The New Zealand Dollar (NZD) also rallied during today’s Asian session as improving market sentiment reflected well on the ‘Kiwi’.

Matthew Andrews

Contact Matthew Andrews