6 May 2014
Session Recap: USD suffers across the board
FXStreet (Córdoba) - US dollar weakness and strong European PMIs were the themes of the session Tuesday. The euro is among the best performers Tuesday, having rallied to fresh 7-week highs versus the dollar, underpinned by better-than-expected Eurozone services PMIs.
The EUR/USD broke above the 1.3900 level and climbed to a high of 1.3930 as Spanish data acted as catalyst for a bullish run. Italy and Spain’s services PMIs beat expectations, with Spanish one reaching a 7-year high of 56.5, while German PMI disappointed (54.7 vs 55.0 exp). For the Eurozone as a whole, PMI rose to 53.1 as expected.
The pound also soared to fresh multi-year highs on the back of strong UK data and a weaker USD. The GBP/USD reached a high of 1.6954, last seen Aug 6 2009.
The AUD/USD broke above 0.9300 following RBA decision to keep rates on hold, while the Kiwi hit a 1-month high of 0.8732. The USD/CHF scored a 7-week low of 0.8735. However, the USD/JPY remained immutable at the vicinity of 102.00.
European stocks were mixed, with the FTSE 100 down 0.14% leading losses, and the Spanish Ibex 35 up 0.43% on the other side of the board.
Today's US docket includes March trade balance, the Redbook index and the IBD/TIPP Economic Optimism for May.
Main headlines in Europe:
Spain Unemployment Change came in at -111.6K disappointing forecasts (-49.1K) in April
Spain Markit Services PMI beat expectations (54.4) in April: Actual (56.5)
Germany: PMI Services rises to 54.7 in April
Eurozone: Services PMI up to 53.1 in April, as expected
UK: PMI Services jumps to 58.7 in April
European Monetary Union Retail Sales (MoM) beat expectations (-0.2%) in March: Actual (0.3%)
What’s the sentiment around the EUR/USD today? – Commerzbank and OCBC Bank
The EUR/USD broke above the 1.3900 level and climbed to a high of 1.3930 as Spanish data acted as catalyst for a bullish run. Italy and Spain’s services PMIs beat expectations, with Spanish one reaching a 7-year high of 56.5, while German PMI disappointed (54.7 vs 55.0 exp). For the Eurozone as a whole, PMI rose to 53.1 as expected.
The pound also soared to fresh multi-year highs on the back of strong UK data and a weaker USD. The GBP/USD reached a high of 1.6954, last seen Aug 6 2009.
The AUD/USD broke above 0.9300 following RBA decision to keep rates on hold, while the Kiwi hit a 1-month high of 0.8732. The USD/CHF scored a 7-week low of 0.8735. However, the USD/JPY remained immutable at the vicinity of 102.00.
European stocks were mixed, with the FTSE 100 down 0.14% leading losses, and the Spanish Ibex 35 up 0.43% on the other side of the board.
Today's US docket includes March trade balance, the Redbook index and the IBD/TIPP Economic Optimism for May.
Main headlines in Europe:
Spain Unemployment Change came in at -111.6K disappointing forecasts (-49.1K) in April
Spain Markit Services PMI beat expectations (54.4) in April: Actual (56.5)
Germany: PMI Services rises to 54.7 in April
Eurozone: Services PMI up to 53.1 in April, as expected
UK: PMI Services jumps to 58.7 in April
European Monetary Union Retail Sales (MoM) beat expectations (-0.2%) in March: Actual (0.3%)
What’s the sentiment around the EUR/USD today? – Commerzbank and OCBC Bank