European Session – Euro tumbles after weak PMIs and record jobless rate
April 2, 2013 12:36 pm
European markets opened for the first time since Thursday, returning from the Easter holidays to a series of euro zone economic data, which was the main driver behind the fall in the euro today.
The Euro zone unemployment rate hit a record 12 percent in March while final manufacturing PMIs are well into contraction territory and getting worse especially for the periphery economies (Spain, Portugal, Greece, Ireland. Italy).
Italy’s PMI fell even more to 44.5 versus a previous Flash estimate of 45.4 and down from a previous 45.8. Spain’s PMI dropped to 44.2, versus a flash 46.2 and 46.8 last. Meanwhile Germany, Europe’s powerhouse, was at 49.0 versus 48.9 forecast, down from 50.3.
EURUSD fell to a session low of $1.2824, down 0.2 percent from the session open. Euro fell the most against the Swedish Krona, with EURSEK tumbling 0.6 percent to 8.3097. A PMI index for Sweden rose to a seasonally adjusted 52.1 in March from 50.9 the previous month.
Focus will turn to the European Central Bank meeting on Thursday.
Sterling was hurt by weak UK manufacturing PMI data which showed a drop by more-than-expected to 48.3 versus 48.9 forecast, though slightly better than February’s shocking 47.9 points. The March number is still in contraction territory, as the 50-point level demarcates growth from contraction.
GBPUSD fell to as low as $1.5181, down from a pre-data session high of $1.5238.Focus will be on the Bank of England policy meeting on Thursady.
Yen gave back gains towards the end of the session, after euro fell to a 5-month low earlier. EURJPY slid to 119.12 before rebounding to 119.93 yen.
USDJPY bounced from an early session low of 92.73 to 93.33 yen.
Investors will be cautious on buying yen on expectations the Bank of Japan’s new governor will introduce a more aggressive monetary easing policy at a meeting on Thursday.
European markets opened for the first time since Thursday, returning from the Easter holidays to a series of euro zone economic data, which was the main driver behind the fall in the euro today.
The Euro zone unemployment rate hit a record 12 percent in March while final manufacturing PMIs are well into contraction territory and getting worse especially for the periphery economies (Spain, Portugal, Greece, Ireland. Italy).
Italy’s PMI fell even more to 44.5 versus a previous Flash estimate of 45.4 and down from a previous 45.8. Spain’s PMI dropped to 44.2, versus a flash 46.2 and 46.8 last. Meanwhile Germany, Europe’s powerhouse, was at 49.0 versus 48.9 forecast, down from 50.3.
EURUSD fell to a session low of $1.2824, down 0.2 percent from the session open. Euro fell the most against the Swedish Krona, with EURSEK tumbling 0.6 percent to 8.3097. A PMI index for Sweden rose to a seasonally adjusted 52.1 in March from 50.9 the previous month.
Focus will turn to the European Central Bank meeting on Thursday.
Sterling was hurt by weak UK manufacturing PMI data which showed a drop by more-than-expected to 48.3 versus 48.9 forecast, though slightly better than February’s shocking 47.9 points. The March number is still in contraction territory, as the 50-point level demarcates growth from contraction.
GBPUSD fell to as low as $1.5181, down from a pre-data session high of $1.5238.Focus will be on the Bank of England policy meeting on Thursady.
Yen gave back gains towards the end of the session, after euro fell to a 5-month low earlier. EURJPY slid to 119.12 before rebounding to 119.93 yen.
USDJPY bounced from an early session low of 92.73 to 93.33 yen.
Investors will be cautious on buying yen on expectations the Bank of Japan’s new governor will introduce a more aggressive monetary easing policy at a meeting on Thursday.
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