|Day's Range||0.899 - 0.899|
|52 Week Range||0.8276 - 0.9494|
European Central Bank chief economist Philip Lane said Tuesday that the eurozone economy hit a bottom in April. "I think it's clear by the way that the absolute bottom was probably in April," he said during an interview for an Institute for International Finance conference. He said the key uncertainty is what happens next year and how quickly economies can recover.
The British pound fell vs. the dollar and the euro as its lead negotiator, David Frost, said "very little progress" was made in Brexit talks with the European Union's Michel Barnier. He said it was hard to understand why the EU was insisting on an "ideological" approach as he said the EU wanted to bind the U.K. to its laws and standards. The next round of talks will be on June 1.
The IHS Markit flash eurozone services purchasing managers index in April skidded to a record low of 11.7 from 26.4 in March, while the manufacturing PMI fell to a 134-month low of 33.6 from 44.5. Economists according to FactSet had expected a reading on the services PMI of 24 and 39.2 for manufacturing, on a scale where any reading below 50 indicates deteriorating conditions. The French services PMI fell to 10.4 in April from 27.4 in March, a record low, and the German services PMI dropped to 15.9 from 31.7. The flash estimate is based on around 85% of total PMI survey responses each month.
EURGBP struggled to gather upward momentum after a failed recovery attempt on Wednesday morning. The currency pair is now trading near its lowest level in one month, as recession fears hit the Eurozone economy.
We strongly believe China wants to show some strength in their perceived economic recovery and that these PMI numbers are somewhat “manufactured for effect”.
The IHS Markit eurozone manufacturing purchasing managers index fell in March to 44.5 from 49.2 in February. That's the lowest reading in 92 months but wasn't a surprise as the flash estimate was 44.8. Around Europe, Italy's manufacturing PMI fell to 40.3 from 48.7, that country's worst since April 2009, while Spain's fell to 45.7 from 50.4 and Greece's fell to 42.5. "Even the slide in the PMI to a seven-and-a-half year low masks the severity of the slump in manufacturing as it includes a measure of supply chain delays, which boosted the index," said Chris Williamson, chief business economist at IHS Markit.
On Tuesday and Wednesday things have been calmer, we will try to look for more technical setups which are more based on dots and less on panic and fear.
The European parliament will approve Britain’s departure from the EU later on Thursday, setting the scene for the U.K. to leave the bloc. British Prime Minister Johnson has hailed the departure, but European officials are much less enthusiastic.
Investing.com - The U.S. dollar is showing some strength against the safe haven Japanese yen Friday as a degree of calmness returns to traders who have fretted all week over the new pneumonia-like virus in China.
U.K. retail sales disappointed again in December dropping 0.6%, adding further force to arguments for an interest rate cut from the Bank of England at the end of the month.
The latest minutes from the European Central Bank (ECB) meeting are due on Thursday and investors will lookout for clues on ECB’s strategy review, and specifically about the change in inflation target.