The euro fell against most of its major peers today, though managed to gain on the Great Britain pound, which was weakened by the comment’s from the British central bank’s chief.
Tuesday’s macroeconomic data released in the eurozone was not helpful to the shared 19-nation currency. The German Producer Price Index fell 0.2% in May from April, a bit more than analysts had predicted (0.1%). The eurozone current account surplus shrank from â¬35.7 billion to â¬22.2 billion in April, while economists predicted a value of â¬31.1 billion.
Uncertainty about timing of the stimulus exit by the European Central Bank was another negative factor for the euro. Adding to the pressure on the currency were speculations that the Federal Reserve will continue monetary tightening.
Yet there were people who thought that it is reasonable to be bullish on the euro in the longer term. Analysts at Bloomberg speculated:
With fading political risks, a recovering economy and economists starting to see the scaling back of quantitative easing on the horizon — just like they did for the Federal Reserve in 2014 — the euro may begin a multi-year appreciation thatâs a copycat of the dollar.
EUR/USD fell from 1.1148 to 1.1132 as of 20:44 GMT today. EUR/JPY dropped from 124.30 to 124.07 after rising to 124.64 intraday. At the same time, EUR/GBP rallied from 0.8749 to 0.8815.
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