Euro: Dollar strength pushes EUR/USD below 1.1400 – Danske Bank

FXStreet Insights Team FXStreet

Danske Research Team notes that the US Dollar (USD) strengthened across G10, driving EUR/USD below 1.1400. The move came alongside a broader risk-off tone, with equities lower, VIX higher and Oil prices retreating. They highlight that global yields edged lower across tenors, underlining a cautious market backdrop for the Euro against the Dollar.

Dollar gains weigh on Euro

"The USD appreciated against the rest of G10 yesterday, which sent EUR/USD below 1.14, USD/SEK above 9.70 and USD/NOK above 9.80."

"Euro area PMIs in June surprised on the upside with the composite PMI rising to 49.5 (cons.: 49.2, prior: 48.5). Manufacturing was slightly weaker at 51.3 (cons.: 51.6, prior: 51.6) while services surprised on the topside at 48.9 (cons.: 48.6, prior: 47.7)."

"The decline in manufacturing was due to delivery times falling while both new orders, employment and output rose, which makes the manufacturing print slightly stronger than what face value suggests. The positive surprise in services comes after Germany surprised significantly to the downside which suggests that Southern Europe have seen decent increases."

"In Germany, the Ifo indicator for June is released. Yesterday's PMI report surprised significantly on the downside for the services sector. It will be interesting to see if the Ifo indicator shows the same picture of the German economy, which would be worrying. "

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.