The US dollar fell to two-week lows against its major rivals yesterday after concerns over the US economy’s resilience sapped USD demand.
As the German manufacturing PMI remained firmly within contraction territory, in spite of an improvement on the month, this left EUR exchange rates vulnerable to selling pressure.
The French economy also showed signs of persistent weakness as the composite PMI stagnated, suggesting that growth momentum remains limited.
This dragged the single currency down against its rivals ahead of the weekend, even in the wake of better-than-expected Eurozone trade data.
April’s German IFO business sentiment survey could offer the euro a stronger rallying point this week, however, if confidence shows signs of strengthening.
As long as sentiment within the German economy improves, pointing towards better growth in the months ahead, EUR exchange rates should find some traction.
On the other hand, the latest European Central Bank (ECB) Economic Bulletin could weigh heavily on the single currency if policymakers continue to show signs of dovishness.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)