TheÂ euro today rallied higher against theÂ US dollar after finance ministers from across theÂ Eurozone reached anÂ agreement regarding Greece’s final bailout. TheÂ euro’s rally was further complemented byÂ theÂ release ofÂ positive PMI data from across theÂ Eurozone byÂ IHS Markit andÂ in-line French GDP data.
TheÂ EUR/USD currency pair today rallied from aÂ low ofÂ 1.1599 toÂ aÂ high ofÂ 1.1674 inÂ theÂ early European session, but was onÂ aÂ downtrend atÂ theÂ time ofÂ writing.
TheÂ currency pair’s rally was triggered byÂ theÂ deal reached early Friday morning between finance ministers from 19 Eurozone countries regarding Greece’s debt crisis. TheÂ ministers approved theÂ deal between Greece andÂ its creditors that would allow theÂ country toÂ emerge from its third and final bailout onÂ 20 August. TheÂ euro’s rally was further supported byÂ theÂ positive Markit Flash Germany Services PMI, which came inÂ atÂ 53.9, versus theÂ expected 52.2. TheÂ Markit Eurozone Services PMI also beat expectations byÂ coming inÂ atÂ 55.0 asÂ compared toÂ theÂ expected 53.8. The final French GDP data forÂ theÂ first quarter also met expectations atÂ anÂ annualized 2.2%.
TheÂ Markit Flash Eurozone Composite PMI also rose toÂ aÂ high ofÂ 54.8 asÂ compared toÂ theÂ previous 54.1 andÂ theÂ expected decline toÂ 53.9. TheÂ Markit Flash France Services PMI also beat expectations, while theÂ Markit Germany Manufacturing PMI missed expectations, but had aÂ muted impact ofÂ theÂ pair.
TheÂ currency pair’s short-term performance is likely toÂ be affected by the release of several Markit Flash US PMIs inÂ theÂ early American session.
TheÂ EUR/USD currency pair was trading atÂ 1.1639 asÂ atÂ 10:37 GMT having dropped slightly from aÂ high ofÂ 1.1674. TheÂ EUR/JPY currency pair was trading atÂ 128.21 having risen from aÂ low ofÂ 127.55.
If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.