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Euro currency news daily

27 February 2017, 11:55 CET
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The Euro retraced some ground as fears over a second Scottish referendum weigh on Sterling at the start of this week. Friday saw the pair hit an intraday high of 1.1872 before spending most of Friday trading down. With no major news from Europe, the high 1.18s seem to be a key resistance level as seen in the pair's moves on Wednesday trading.

EUR/USD was fairly range bound as a mixed bag of economic data out of the US saw the Euro initially gain touching levels of 1.0618 before falling back into negative territory. U.S New Home Sales rose by 3.7% which came in under expectations of 6.3% and in a separate report, the University of Michigan confirmed the Consumer Sentiment Index hit 96.3 this month, slightly above expectations. Still playing on the back of investor minds were the minutes of the Federal Reserve which have dampening demand for the world's largest reserve currency. Support for the EUR/USD sits at 1.0520, any moves held above 1.0600 could favour a recovery in the pair.

The main news this week mostly comes from the US in the form of durable goods orders, Trump's speech to congress and ISM manufacturing PMI, however, the Eurozone also posts economic sentiment/confidence surveys, Unemployment rates, Services/manufacturing PMI plus inflation and Retail sales numbers.

We open today with GBP/EUR at 1.1730 and EUR/USD at 1.0575.

US Dollar

GBP/USD opens lower this morning with the pair retreating from a weekly high of 1.2569. Sterling had enjoyed a small boost on Friday as BBA Mortgage Approvals surged to their highest in a year in January, up to 44.7K mortgages in January, and up from 43.6K in December. Overnight saw cable dip below 1.24 after a report in the Times heightened concerns over a second Scottish referendum. The paper reported that as Theresa May heads north to speak at the Scottish Conservative conference this week, the SNP government raised the issue at a private meeting on Wednesday and Scottish first minister Nicola Sturgeon looks set to call a vote at the Scottish parliament.

On the data front this week, Wednesday's sees Manufacturing PMI for the month of February with markets forecasting a reading of 55.5. Mortgage Approvals will also be released on Wednesday for the month of February. Rounding off the week Construction PMI on Thursday is forecast at 52.4. Services PMI on Friday is forecast at 54.2. Over in the US, the main items on the dockets are today's Durable goods orders release, Trump's speech to Congress and ISM Manufacturing PMI on Wednesday. The week rounds off with US Service PMI and speeches from Fed Members including Fed Chain Janet Yellen.

Aussie and Kiwi Dollars

The Australian dollar edged lower into the weekly close sliding back below 0.77 U.S cents despite widespread USD weakness. Having failed to break resistance at 0.7730. Despite a string of reasonable macroeconomic indicators, the expected interest yield between Australia and the US remains largely unchanged with the RBA likely to maintain record low interest rates. Wednesday's GDP print may be the catalyst needed to break the cycle of neutral monetary policy. A poor print will mark a 2nd consecutive quarterly decline and by technical definition push the economy into recession opening the door to a possible rate cut.

The New Zealand dollar traded in a tight range last week testing resistance levels at 0.7240 on Friday evening. With little domestic news on Friday, markets were flat leading into the American session. A busy week for economic data both domestically and offshore kick-started by local Visitor arrival numbers and Trade balance figures on Tuesday.

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Document Actions
Eurozone Economic Calendar

Monday 27 February

10:00 Private loans (YoY) (Jan)
10:00 M3 Money Supply (3m) (Jan)
10:00 M3 Money Supply (YoY) (Jan)
11:00 Business Climate (Feb)
11:00 Economic Sentiment Indicator (Feb)
11:00 Industrial Confidence (Feb)
11:00 Services Sentiment (Feb)
11:00 Consumer Confidence (Feb)

Wednesday 1 March

10:00 Markit Manufacturing PMI (Feb)

Thursday 2 March

11:00 Unemployment Rate (Jan)
11:00 Consumer Price Index - Core (YoY) (Feb) (Preliminary release)
11:00 Consumer Price Index (YoY) (Feb) (Preliminary release)
11:00 Producer Price Index (MoM) (Jan)
11:00 Producer Price Index (YoY) (Jan)

Friday 3 March

10:00 Markit Services PMI (Feb)
10:00 Markit PMI Composite (Feb)
11:00 Retail Sales (YoY) (Jan)
11:00 Retail Sales (MoM) (Jan)
21:30 CFTC NC net positions