Forex News Review – Euro slips below $1.32

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Euro fell below the key $1.32 level today after weak euro zone data indicated a deepening downturn for the region’s manufacturing sector and record-high unemployment. EURUSD fell to a low of 1.3121 before retracing to 1.3166. The euro briefly trimmed losses after weaker-than-expected U.S. private sector jobs.

 

The ADP employment reports showed 119,000 jobs were created in April versus 170,000 forecast, and down from a previous 201,000 gain. The focus now turns to the more closely watched U.S. nonfarm  payrolls report on Friday. Meanwhile, the European Central Bank policy meeting is being held on Thursday. Expectations are that the interest rate will be kept at a record low 1 percent. The focus will be on ECB President Mario Draghi’s speech on any hints on his outlook on the European economy.

 

Sterling rose 0.5 percent against the euro, bringing EURGBP to a 22-month low of 0.8111 in early European treading hours after which the pair consolidated until the end of the US session. GBPUSD touched a low of 1.6160, down from an eight-month high of 1.6300 on Monday.

 

EURJPY fell 0.5 percent to 105.11, the lowest since April 16. The dollar fell against the yen after the disappointing ADP jobs report. USDJPY fell to a low of 80.04 before steadying.

 

Crude oil prices declined all day on the weak data from both Europe and the US.  Price briefly fell below $105, down from a one-month high of $ 106.41 hit on Tuesday.