Risk was off during the US session on Thursday, as investors waited on the sidelines for developments in the euro zone where renewed concerns over the debt crisis have been ignited. Meanwhile weak economic data from the region earlier in the day weighed heavily on the single currency.
The purchasing managers’ (PMI) index for both the euro zone as a whole and Germany and France all showed deterioration in manufacturing activity in March. A report compiled my Markit showed that the German manufacturing purchasing managers’ (PMI) index dropped to a seasonally adjusted 48.9 in March from a February’s final reading of 50.3. Germany is seen as the Europe’s engine of growth.
This accelerated the euro close to a four-month low against the dollar, to touch an intraday low of $1.2879, and hovered around that level during the US session.
There was some reprieve in sentiment when economic data from the US showed the Philadelphia Federal Reserve manufacturing index rose sharply in March. Also the Conference Board’s leading economic index grew 0.5 percent February, a third straight month of gains.
However this was not enough to prevent dollar from falling against the yen. USDJPY touched a low of 94.64 before settling around 94.90, down 1.1 percent on the day.
EURJPY fell to a low of 122.14, down over 2 percent on the day.
GBPUSD was a big mover today, after being boosted to $1.5208 by strong UK retail sales. Sterling was unable to add to gains but has held up well against the dollar, ending at around $1.5170.
Risk was off during the US session on Thursday, as investors waited on the sidelines for developments in the euro zone where renewed concerns over the debt crisis have been ignited. Meanwhile weak economic data from the region earlier in the day weighed heavily on the single currency.
The purchasing managers’ (PMI) index for both the euro zone as a whole and Germany and France all showed deterioration in manufacturing activity in March. A report compiled my Markit showed that the German manufacturing purchasing managers’ (PMI) index dropped to a seasonally adjusted 48.9 in March from a February’s final reading of 50.3. Germany is seen as the Europe’s engine of growth.
This accelerated the euro close to a four-month low against the dollar, to touch an intraday low of $1.2879, and hovered around that level during the US session.
There was some reprieve in sentiment when economic data from the US showed the Philadelphia Federal Reserve manufacturing index rose sharply in March. Also the Conference Board’s leading economic index grew 0.5 percent February, a third straight month of gains.
However this was not enough to prevent dollar from falling against the yen. USDJPY touched a low of 94.64 before settling around 94.90, down 1.1 percent on the day.
EURJPY fell to a low of 122.14, down over 2 percent on the day.
GBPUSD was a big mover today, after being boosted to $1.5208 by strong UK retail sales. Sterling was unable to add to gains but has held up well against the dollar, ending at around $1.5170.
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