As part of the European Session today the Euro slightly dropped in value. The session opened at 1.4833 it followed a downwards movement while it recorded a trough point at 1.4754. During the day Producer Price Index figures were announced in the Eurozone for the month of March remaining steady at a 0.7% rate that did not generate any significant volatility. It is expected that the dollar slightly recovered from the three-year lows as numerous bets of sell it due to loose U.S monetary policy expired, while gains against the euro were capped.
The Euro today rose to a 13 month high against the Sterling after the Sterling was plumed by weak production manufacturing data. The PMI for April dropped to 54.6 which was significantly lower than what it was expected and therefore crashed the UK investors’ expectations of a future UK interest rate hike. Within minutes of the news announcement the Sterling lost over 40 pips that brought the Euro to high levels.
The weak Production Manufacturing figures for the UK gave a chance for the Dollar to catch up against the Sterling. The Sterling rose significantly against the Dollar last week after the 0.5% rise in the GDP but today the Dollar gained over 150 pips. Upon the news announcement the Sterling dropped a near 75 pips while the dropped in the value of the sterling continued. The pair is currently traded at 1.6480.
The Swiss Franc has remained at similar levels against the US Dollar as part of today’s European session. Nevertheless during the session the Swiss Franc reached to a new high against the US Dollar, this time at 0.8618, but following that low the Dollar bounced back immediately. It is estimated that the weak US monetary policy is the main reason for the Dollar recording that low.
The US Dollar continued to drop against the Yen. Until mid-day the USDCHF was traded in around 80.98, a dodgy hourly candle was generated at 09:00 GMT time that indicated uncertainty and following that the Dollar dropped a near 30 pips. The USDJPY pair is currently traded at 80.72 during a day that the Japanese market was closed due to a bank holiday.