EUR/USD Down in Forex Markets After Negative German Figures

Steve Miley

forex graph with downwards arrowThe single European currency found itself suffering in the foreign exchange markets as trading got underway on Thursday.

The euro was down to $1.1153 in the EUR/USD pair, and across the course of the day it lost the most off its value since last month.

This development followed negative news from Germany, with an indicator of business morale in the major economy released by the Ifo organisation showing a dip. Analysts had been forecasting a slight amount of growth.

Elsewhere, the US dollar index, which monitors the greenback’s rises and falls in proportion to other major currencies across the globe, went up to 98.189, which represents a peak of almost two years.

The euro’s performance helps determines the outcome of this metric, partially explaining the rise.

The Australian dollar was stuck in the same region as before compared to the US dollar and was trading at $0.7017.

The Japanese yen was down to 112.40 in the JPY/USD pair, which is its worst performance in the whole of 2019 so far, in advance of the Bank of Japan’s monetary policy decision today.

There’s still plenty for forex traders to keep their eyes on as the end of the week approaches.

Today (Thursday) there will be major economic data releases from the US. Nondefense capital goods orders (excluding aircraft), a measure which is released by the US Census Bureau, will be out at 12.30pm GMT. This is expected to show a change from -0.1% to +0.1%.

US durable goods orders for the month of March will also be released today, also at 12.30pm GMT. It is expected that this will show a rise from -1.6% to +0.8%.

The Federal Reserve Bank of Kansas City will publish its quarterly Survey of Manufacturers, covering April, at 3pm GMT. This was last recorded at 17.

Looking ahead to tomorrow (Friday), there will be a speech from the chair of the Swiss National Bank, Thomas J. Jordan, at 8am GMT.

Then there’ll be an industrial trends survey published by the Confederation of British Industry at 10am GMT covering April. This is expected to show a month on month change from 1 to 3.

Preliminary, annualised US gross domestic product information will be out at 12.30pm GMT, covering the first quarter of the year. This is due to show a change from 2.2% to 2.1%.

At 2pm GMT, the Michigan Consumer Sentiment Index will be released by the University of Michigan.

There’s also plenty on next week’s economic calendar to hold the attention of traders too.

Japanese banks will be closed on Monday due to the Showa Day holiday, meaning that Asian trading may be a little slower than usual.

Elsewhere, a core personal consumption expenditure price index for February is due out of the US at 12.30pm GMT. This is due to show no month on month change from its current position of 0.1%.

On Tuesday, German unemployment change data for the month of April is out at 7.55am GMT. The last time this metric was published, a change of -7,000 was shown.

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Steve Miley
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