Euro rises to 6-/12 month highs after Germany's Merkel calls it "weak": May 23, 2017
|Market Review - 22/05/2017 23:20GMT
Euro rises to 6-/12 month highs after Germany's Merkel calls it "weak"
The single currency continued its recent winning streak and hit a 6-1/2 month peak of 1.1264 against the greenback on Monday after Germany's Chancellor Angela Merkel called the euro "too weak".
Germany's Merkel said 'we have to prevent further states fm leaving EU; wishes that France's Macron is successful in fighting unemployment; best way to counter populists is to solve problems; euro is that weak because of the ECB's monetary policy.'
Earlier in the day, euro remained under pressure in Asia due to selling in eur/yen following Sunday's missile test by N. Korea. Euro dropped to 1.1162 in European morning, however, price quickly pared its losses after comments from Merkel and rallied to 1.1264 in New York morning due partly to cross-buying of euro especially vs sterling and later retreated to 1.1228/29.
Versus the Japanese yen, although the greenback rebounded from New Zealand low at 110.88 to 111.61 in Asian morning, price pared its gains and retreated to 111.15 in early European morning, then to 110.98 in New York morning. Price moved narrowly for rest of New York session,
The British pound opened lower in New Zealand and retreated to 1.2974 at Asian open, then marginally lower to session low at 1.2966 in European morning. However, cable found renewed buying there and rose in tandem with euro to an intra-day high at 1.3043 in New York morning. Cable ratcheted lower to 1.2992 in the afternoon session on cross-selling in sterling.
In other news, Chief EU negotiator Michel Barnier said 'expects first Brexit talks in week starting June 19; hopes to see British at negotiating table as soon as possible; hopes can discuss future trade deal at end of this year, early next; sooner we agree on first phase of Brexit, sooner can discuss future free trade deal.'
Data to be released on Tuesday:
Japan manufacturing PMI, Swiss trade balance, France business climate, manufacturing PMI, services PMI, Germany GDP, manufacturing PMI, services PMI, EU manufacturing PMI, services PMI, UK PSNB, PSNCR, CBI trends, U.S. redbook, manufacturing PMI, services PMI and new home sales.
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