Euro Continues Assault On Slumping Dollar
The euro rocketed higher along with global stocks Monday morning, fueled by solid results from European banks and another round of encouraging economic data from across the Atlantic.
Two months ago, Europe was in turmoil and and the US was looking relatively good. With Europe’s debt crisis easing and the US economy in paralysis, the tables have turned this summer.
Federal Reserve Chairman Ben Bernanke said Monday that conditions have become less supportive of US economic growth in recent months and that the nation still has a “considerable” way to go before a full recovery is achieved.
Meanwhile, ISM data released this morning showed US manufacturing momentum has been slowing since spring amid sluggish consumer demand.
The euro extended its strong recent gains versus the dollar, jumping more than a penny to a 3-month high of 1.3175. On June 3, the euro began to claw back from a 4-year low of 1.1805.
The euro also strengthened versus the yen, rising to 114.15 before pulling back to 113.85.
The euro hit a monthly low versus the red-hot sterling overnight, hitting 0.8253 before improving to .8390.
Eurozone manufacturing activity showed strong momentum in July, a survey from Markit Economics revealed Monday.
The final Purchasing Managers’ Index rose to a 3-month high of 56.7 in July, up from 55.6 in June and above the earlier flash estimate of 56.5. The reading signaled the tenth successive monthly improvement in overall operating conditions.
US manufacturing activity in the month of July expanded at a slower pace than in the previous month, the Institute for Supply Management revealed in a report on Monday, although the index of activity in the sector fell by less than economists had expected.
The ISM said its manufacturing index fell to a reading of 55.5 in July from 56.2 in June, with a reading above 50 indicating continued growth in the sector.
