Euro Shows Mixed Trading Against Majors
Friday, the European currency climbed to a 2-day high against the US dollar and the Japanese yen. On the other hand, the euro pared its Asian session gains against the British pound, while showed choppy trading versus the Swiss franc.
In economic news from Europe, Germany’s Federal Statistical Office said in a report that the import price index dropped 10.4% year-over-year in May, compared to the 8.6% fall in the previous month. This was the highest price decline since February 1987. Economists were looking for a decline of 10.3%. On a monthly basis, import prices remained unchanged in May, after falling 0.8% in April. Economists had predicted an increase of 0.3%.
Meanwhile, the French statistical office INSEE said in a report that the consumer confidence stood at minus 37 in June, up from minus 40 in May. Economists had expected a reading of minus 39 for June.
Also, the French statistical office INSEE confirmed a 1.2% sequential contraction for its economy in the first quarter. At the same time, the statistical agency revised the figure for the fourth quarter to show a fall of 1.4% from a 1.5% contraction reported initially.
A report by France’s Ministry of Labor and Employment showed today that the number of unemployed persons increased by 1.5% or 36,400 in May from the preceding month. Year-on-year, the number of unemployed persons increased by 26.4%. During the month, there were 2,543,100 unemployed persons.
Against the US dollar, the European currency edged higher during early deals on Friday. At 6:45 am ET, the euro-dollar pair reached a 2-day high of 1.4092, compared to 1.3989 hit late New York Thursday. If the pair gains further, 1.424 is seen as the next target level.
The single currency lost ground after hitting a high of 0.8573 against the British pound at 1:15 am ET Friday. The euro-pound pair is currently trading at 0.8539 with 0.843 seen as the next target level. The pair closed Thursday’s North American session at 0.8548.
The 16-nation currency largely bounced between 1.532 and 1.529 against the Swiss franc during today’s early deals. The euro-franc pair is now worth 1.5307, compared to Thursday’s closing value of 1.5304.
KOF economic think tank said its economic barometer for Switzerland rose to minus 1.65 in June from May’s revised reading of minus 1.85. Meanwhile, economists had expected the indicator to rise to minus 1.75.
Against the Japanese yen, the euro traded higher during Friday’s early deals. At 2:40 am ET, the euro-yen pair hit a 2-day high of 134.96, compared to yesterday’s closing value of 134.26. The next upside target level for the pair is seen around 137.2.
Japan’s consumer prices dropped sharply in May compared to the year-ago period, mainly due to lower prices for utilities, transport and communication, official data showed today.
Data released by the Ministry of Internal Affairs and Communications said consumer prices fell 1.1% year-on-year in May, coming in line with economists’ estimate, after a 0.1% drop in the previous month. Consumer prices declined for the fourth consecutive month in May.
Japan’s index of all industry activity dropped 9.9% year-on-year in April, slower than a 11.9% fall in the preceding month, the Ministry of Economy, Trade and Industry said today. The index has been declining on an annual basis continuously since March 2008.
Traders are now likely to focus on the North American session, in which the U.S. Bureau of Economic Analysis is due to release its personal income & outlays report for May at 8:30 am ET. Economists estimate the report to show that personal income rose 0.2% and the personal spending increased 0.4% in the month.
At 10:00 am ET, the Reuters/University of Michigan’s final report on the consumer sentiment index for June is scheduled to be released. Consumer confidence is expected to rise in the month, with economists forecasting an increase in the index to 69 from the previous month’s reading of 68.7.
