The euro continues to rise

(ABM FN-Dow Jones) The euro was trading significantly higher on Thursday than it was on Wednesday in the second half of the morning, reflecting the impact of better-than-expected US inflation data for June. Today’s focus is on the minutes of the latest ECB policy meeting.

Currency trader Stéphane van der Meer of currency brokerage Ebury told ABM Financial News on Thursday: “The euro hit its highest level on Thursday since the start of the current rally. The question is how long the currency can hold this.” “The British pound also continues to strengthen and today is trading above $1.30 for the first time since April last year, mainly driven by better-than-expected economic growth figures from the UK for the month of May,” the Ebery-based trader said on Thursday.

The British economy fell 0.1% in May on a monthly basis, but expectations were for a decline of 0.4%. On an annual basis, the size of the British economy increased by 0.4 percent in May, while a contraction of 0.7 percent was expected.

In addition, industrial production in the United Kingdom fell by 0.6 percent in May, while a decline of 0.4 percent was expected. The country’s exports fell 4.4 percent month-on-month, while imports rose 4.2 percent in May.

The French confirmed today that the inflation rate for the month of June was 4.2 percent, compared to 5.1 percent in May.

Eurozone industrial production in May was 0.2 percent higher on a monthly basis, which had been expected to rise by 0.3 percent. On a yearly basis, production decreased by 2.2 percent. The expectation for this was a decline of 1.1 percent.

In the US, the weekly Helpdesk Claims and Producer Prices for June are on the agenda this afternoon. For requests for help, 2,000 more than the previous week is expected, bringing the forecast to 250,000. Producer prices are expected to rise by 0.2 percent in May compared to a decline of 0.3 percent in April. Prices, excluding food and energy impacts, are expected to rise 0.2 percent month-on-month, the same as in May.

Among the speakers today is Federal Reserve Executive Director Christopher Waller. European Central Bank President Christine Lagarde and Executive Director Fabio Panetta participate in the Eurogroup meeting, which begins today.

The euro rose 0.3 percent on Thursday to $1.1165. The European currency fell 0.1 percent to 0.8556 pounds. The British pound rose 0.4 percent to $1.3041.

Bron: ABM Financial News