Euro continues slow march to strength USD weakens post manufacturing data

Last week we saw, following the large events for January, a shift in sentiment in the market as EUR began to strengthen amidst poor data. This week has started no differently for the single currency as yesterday, amidst positive GBP data in the morning which showed an increase in manufacturing PMI from a predicted 52.6 to 53, we saw throughout the day it gain against the pound, and by the end of the day’s trading it had stolen almost a cent. This only demonstrates the fact that indeed EUR prices were overcooked following last month’s storm and that at present sentiment is outweighing data and the market is correcting.

For USD, the mornings data release showed an increase in personal income from a predicted 0.2% to 0.3% but this only temporarily halted the Euro’s slow march back from the dizzy heights we have recently seen. Afternoon US manufacturing data and construction data, which came in under expectations, seemed to release further pressure on the EUR/USD cross and by the end of play, the single currency had gained also – around half a cent against the greenback.

Today will be an interesting day as we may continue to see this current trend play out. We have UK house pricing data in the morning, followed by a raft of EUR data (albeit releases of no major note) capped off by the Redbook index, ISM index and factory orders from the US.

The main releases of the day are from the other side of the world as we see announcements for AUD, as the RBA will announce their statement and interest rate decision, whilst New Zealand (NZD) release unemployment and labour data.

However still the focus will be largely on the majors and the fall-out form last month. Certainly it will be a telling day as we will see if market sentiment will continue to outweigh data and if the Euro will continue to strengthen. It would seem at present that the corner has been turned and despite the recent severe losses, the Euro is now slowly regaining strength. As such any of you with upcoming Euro requirements may like to take advantage now before the best rates we have seen in 7 years perhaps soon become unavailable.

Speak to your C. I broker today for some friendly and professional guidance on how to get the most out of your currency transfer – Currency Index can help you stay well informed and well ahead of the market.