Currency Analyst since 2010

Euro and pound are hit by data

EUR/USD is trading on the downside. The pair tested levels below 1.0700 on weaker than expected key manufacturing and services PMIs released in the euro area. Manufacturing PMI for the whole region declined from 52.2 to 51.9, while the services PMI slid from 54.2to 53.7. German and French figures also went down.

GBP/USD met resistance in the 1.5050 area. British retail sales contracted by 0.5% after rising by 0.7% in the previous month.

NZD/USD decline to 0.7550 as the Reserve Bank of New Zealand Assistant Governor John McDermott said that weakening demand and lower price risks might warrant lower rates in New Zealand. In addition, China’s flash HSBC flash PMI came in at a 12-month low. On the one hand, the news is negative for NZD and AUD, although the markets will be now expecting additional stimulus from the People’s Bank of China, and this is a positive factor.

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