FOREX TradingCharts.com

Forex News: Euro Lower As ECB Stimulus Hopes Rise After

Euro Lower As ECB Stimulus Hopes Rise After Soft Eurozone Data

07/31/2019 - 06:49:00 (RTTNews)

(RTTNews) - The euro came under pressure against its major counterparts in the European session on Wednesday, as a slowdown in Euro zone economic growth in the second quarter and inflation in July intensified hopes that the European Central Bank will announce stimulus measures in September.

Flash estimate from Eurostat showed that the euro area economy expanded at a slower pace as expected in the second quarter.

Gross domestic product grew 0.2 percent sequentially, following the first quarter's 0.4 percent expansion. The rate came in line with expectations.

On a yearly basis, economic growth eased to 1.1 percent from 1.2 percent. Nonetheless, the rate of growth exceeded the expected 1 percent.

Separate data showed that Eurozone consumer price inflation slowed in July, after rising in the previous month.

Headline inflation eased to 1.1 percent from 1.3 percent in June. The slowing was in line with economists' expectations.

Core inflation, which strips out the volatile energy, food, alcohol & tobacco prices, slowed to 0.9 percent from 1.1 percent. Economists had forecast 1 percent.

Another report showed that the unemployment rate reached its lowest level in almost 11 years in June.

The jobless rate dropped to 7.5 percent in June, as expected, from 7.6 percent in May. This was the lowest since July 2008. Unemployment decreased by 45,000 from May to 12.377 million in June.

European stocks were mixed as investors digested mixed earnings and looked ahead to the latest monetary policy decision from the Federal Reserve for clues on the policy path. It will be up to Chair Powell to steer market expectations for more rate cuts via the press conference.

The currency was trading mixed against its major counterparts in the Asian session. While it held steady against the greenback and the pound, it fell against the yen. Against the franc, it advanced.

The euro was trading at 1.1144 against the greenback, down from a 6-day high of 1.1162 hit at 2:15 am ET. The pair had closed Tuesday's deals at 1.1155. The currency is likely to find support around the 1.09 level.

The European currency ticked down to 120.98 against the yen from yesterday's closing value of 121.12. The euro is seen finding support around the 118.00 level.

Data from the Cabinet Office showed that Japan's consumer confidence weakened to the lowest level in five-and-a-half years in June.

The consumer confidence index for households with two or more persons fell to a seasonally adjusted 37.8 in July from 38.7 in June. Economists had expected a score of 38.5.

After a 5-day rise to 1.1062 against the Swiss franc at 1:30 am ET, the euro pulled back to 1.1040. On the downside, 1.07 is possibly seen as the next support level for the euro.

The euro edged down to 0.9157 against the pound, following an advance to 0.9181 at 5:30 pm ET. If the euro declines further, it may find support around the 0.885 level.

Data from the Nationwide Building Society showed that UK house prices increased for the second straight month in July.

House prices grew 0.3 percent month-on-month, faster than the 0.1 percent rise in June and the expected 0.2 percent increase.

The euro fell to 1.6852 against the kiwi and 1.6161 against the aussie, from its early near a 3-week high of 1.6930 and more than a 4-week high of 1.6248, respectively. The next possible support levels for the euro are seen around 1.66 against the kiwi and 1.59 against the aussie.

On the flip side, the euro held steady against the loonie, after having declined to a 2-day low of 1.4648 at 9:15 pm ET. At yesterday's close, the pair was worth 1.4669.

Looking ahead, U.S. ADP private payrolls data for July will be published at 8:15 am ET.

In the New York session, Canada GDP data for May and industrial product price index for June will be out.

At 2:00 pm ET, the Federal Reserve's interest rate decision is slated for release. Economists widely expect the central bank to cut rates to 2.00 percent - 2.25 percent.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT FOREX and ECONOMIC NEWS STORIES


U.S. Dollar Pulls Back As Powell Vows To Act As Appropriate (08 hr(s), 08 min(s), 07 sec(s) ago)
(RTTNews) - The U.S. dollar gave up its early gains against its key counterparts in the New York s ...Full Story»

Dollar Ticks Down Following U.S. New Home Sales (08 hr(s), 59 min(s), 07 sec(s) ago)
(RTTNews) - After the release of U.S. new home sales for July at 10:00 am ET Friday, the greenback ...Full Story»

Australian Dollar Falls As China Announce Retaliatory Tariffs (09 hr(s), 05 min(s), 06 sec(s) ago)
(RTTNews) - The Australian dollar declined against its major counterparts in the European session ...Full Story»

Loonie Rises Following Canada Retail Sales (10 hr(s), 29 min(s), 07 sec(s) ago)
(RTTNews) - After the release of Canada retail sales for June at 8:30 am ET Friday, the loonie ros ...Full Story»

Loonie Mixed Ahead Of Canada Retail Sales (10 hr(s), 38 min(s), 07 sec(s) ago)
(RTTNews) - Statistics Canada is set to release Canada retail sales for June at 8:30 am ET Friday. ...Full Story»

U.S. Dollar Higher Ahead Of Powell's Speech (12 hr(s), 47 min(s), 07 sec(s) ago)
(RTTNews) - The U.S. dollar strengthened against its major counterparts in early European deals on ...Full Story»

Pound Strengthens On Merkel's Comments On Brexit Deal (08 hr(s), 14 min(s), 07 sec(s) ago)
(RTTNews) - The pound strengthened against its major counterparts in the New York session on Thurs ...Full Story»

Euro Little Changed After Eurozone Consumer Sentiment Index (08 hr(s), 56 min(s), 07 sec(s) ago)
(RTTNews) - Following the release of Eurozone flash consumer sentiment index for August at 10:00 a ...Full Story»

Search

FOREX NEWS

U.S. Dollar Pulls Back As Powell Vows To Act As Appropriate

08/23/2019 - 10:56 AM (RTTNews)
(RTTNews) - The U.S. dollar gave up its early gains against its key counterparts in the New York s ...Full Story>>

Dollar Ticks Down Following U.S. New Home Sales

08/23/2019 - 10:04 AM (RTTNews)
(RTTNews) - After the release of U.S. new home sales for July at 10:00 am ET Friday, the greenback ...Full Story>>

Australian Dollar Falls As China Announce Retaliatory Tariffs

08/23/2019 - 09:58 AM (RTTNews)
(RTTNews) - The Australian dollar declined against its major counterparts in the European session ...Full Story>>

Loonie Rises Following Canada Retail Sales

08/23/2019 - 08:33 AM (RTTNews)
(RTTNews) - After the release of Canada retail sales for June at 8:30 am ET Friday, the loonie ros ...Full Story>>

Loonie Mixed Ahead Of Canada Retail Sales

08/23/2019 - 08:25 AM (RTTNews)
(RTTNews) - Statistics Canada is set to release Canada retail sales for June at 8:30 am ET Friday. ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.