The 17-nation currency tumbled for the first time in four days against the yen after the region’s factory output dropped more in September than economists forecast, adding to signs the recovery is stalling. The common currency fell versus all except three of its 16 major counterparts before a report tomorrow that analysts said will show gross domestic product growth slowed in the third quarter. The pound strengthened after the Bank of England improved its outlook for unemployment. The yen advanced as European and Asian stocks declined, spurring demand for safer assets.
According to Alvin Tan, the euro is a sell on rallies as the recovery in the euro area is particularly strong and expects the GDP data tomorrow to show growth momentum is definitely slackening. He predicted that this will put downward pressure on the euro.
The euro fell 0.2 percent to 133.59 yen at 6:09 a.m. in New York after strengthening 1.7 percent in the previous three days. The common currency declined 0.1 percent to $1.3420. The yen gained 0.1 percent to 99.55 per dollar after sliding to 99.80 yesterday, the weakest level since Sept. 13.
Factory production in the euro area dropped 0.5 percent in September after rising 1 percent the previous month, data from Eurostat showed today. Economists in a survey predicted a decline of 0.3 percent. The region’s GDP expanded 0.1 percent in the third quarter, from 0.3 percent in the previous three months, a separate survey showed.
The euro gained 6.4 percent this year, the best performer of 10 developed-nation currencies tracked by Correlation-Weighted Indexes. The dollar rose 4.4 percent and the yen tumbled 10 percent. The yen advanced today as the MSCI Asia Pacific Index of shares declined 1 percent and the Stoxx Europe 600 Index of equities dropped 0.6 percent.
The pound climbed at least 0.2 percent versus all of its 16 major counterparts after the Office for National Statistics said the jobless rate as measured by International Labour Organisation standards fell to 7.6 percent in the three months through September.
According to Alvin Tan, the euro is a sell on rallies as the recovery in the euro area is particularly strong and expects the GDP data tomorrow to show growth momentum is definitely slackening. He predicted that this will put downward pressure on the euro.
The euro fell 0.2 percent to 133.59 yen at 6:09 a.m. in New York after strengthening 1.7 percent in the previous three days. The common currency declined 0.1 percent to $1.3420. The yen gained 0.1 percent to 99.55 per dollar after sliding to 99.80 yesterday, the weakest level since Sept. 13.
Factory production in the euro area dropped 0.5 percent in September after rising 1 percent the previous month, data from Eurostat showed today. Economists in a survey predicted a decline of 0.3 percent. The region’s GDP expanded 0.1 percent in the third quarter, from 0.3 percent in the previous three months, a separate survey showed.
The euro gained 6.4 percent this year, the best performer of 10 developed-nation currencies tracked by Correlation-Weighted Indexes. The dollar rose 4.4 percent and the yen tumbled 10 percent. The yen advanced today as the MSCI Asia Pacific Index of shares declined 1 percent and the Stoxx Europe 600 Index of equities dropped 0.6 percent.
The pound climbed at least 0.2 percent versus all of its 16 major counterparts after the Office for National Statistics said the jobless rate as measured by International Labour Organisation standards fell to 7.6 percent in the three months through September.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.