Forex Report EURUSD Hits 2Week High as ECB Holds On Rates
Overnight, the ICE Dollar Index fell for a fifth straight session...
Share this:
Overnight, the U.S. dollar weakened further against its major peers, with the ICE Dollar Index dropping 0.5% on day to 99.04, down for a fifth straight session.
EUR/USD advanced 0.6% to a two-week high of 1.0941. The European Central Bank kept its key interest rates unchanged as expected.
Further, the central bank reduced the interest rate on TLTRO (longer-term refinancing operations, loans that ECB provides to European banks) to 50 basis points below the average interest rate on the Eurosystem's main refinancing operations.
Meanwhile, official data showed that the eurozone's economy contracted 3.8% on year in the first quarter (-3.4% expected), while jobless rate edged up to 7.4% in March (7.8% expected) from 7.3% in February. Also, CPI grew 0.4% on year in April (+0.1% expected).
GBP/USD climbed 0.9% to 1.2574.
USD/JPY gained 0.5% to 107.24, snapping a six-day decline.
USD/CAD rebounded 0.6% to 1.3966. Government data showed that Canada's GDP was flat on month in February (+0.2% expected).
Other commodity-linked currencies also retreated against the greenback. AUD/USD sank 1.1% to 0.6484 and NZD/USD dipped 0.5% to 0.6105.
China's official Manufacturing PMI fell to 50.8 in April (51.0 expected), while non-manufacturing PMI climbed to 53.2 (52.5 estimated).
EUR/USD advanced 0.6% to a two-week high of 1.0941. The European Central Bank kept its key interest rates unchanged as expected.
Further, the central bank reduced the interest rate on TLTRO (longer-term refinancing operations, loans that ECB provides to European banks) to 50 basis points below the average interest rate on the Eurosystem's main refinancing operations.
Meanwhile, official data showed that the eurozone's economy contracted 3.8% on year in the first quarter (-3.4% expected), while jobless rate edged up to 7.4% in March (7.8% expected) from 7.3% in February. Also, CPI grew 0.4% on year in April (+0.1% expected).
Source: GAIN Capital, TradingView
GBP/USD climbed 0.9% to 1.2574.
USD/JPY gained 0.5% to 107.24, snapping a six-day decline.
USD/CAD rebounded 0.6% to 1.3966. Government data showed that Canada's GDP was flat on month in February (+0.2% expected).
Other commodity-linked currencies also retreated against the greenback. AUD/USD sank 1.1% to 0.6484 and NZD/USD dipped 0.5% to 0.6105.
China's official Manufacturing PMI fell to 50.8 in April (51.0 expected), while non-manufacturing PMI climbed to 53.2 (52.5 estimated).
Overnight, the U.S. dollar weakened further against its major peers, with the ICE Dollar Index dropping 0.5% on day to 99.04, down for a fifth straight session.
EUR/USD advanced 0.6% to a two-week high of 1.0941. The European Central Bank kept its key interest rates unchanged as expected.
Further, the central bank reduced the interest rate on TLTRO (longer-term refinancing operations, loans that ECB provides to European banks) to 50 basis points below the average interest rate on the Eurosystem's main refinancing operations.
Meanwhile, official data showed that the eurozone's economy contracted 3.8% on year in the first quarter (-3.4% expected), while jobless rate edged up to 7.4% in March (7.8% expected) from 7.3% in February. Also, CPI grew 0.4% on year in April (+0.1% expected).
GBP/USD climbed 0.9% to 1.2574.
USD/JPY gained 0.5% to 107.24, snapping a six-day decline.
USD/CAD rebounded 0.6% to 1.3966. Government data showed that Canada's GDP was flat on month in February (+0.2% expected).
Other commodity-linked currencies also retreated against the greenback. AUD/USD sank 1.1% to 0.6484 and NZD/USD dipped 0.5% to 0.6105.
China's official Manufacturing PMI fell to 50.8 in April (51.0 expected), while non-manufacturing PMI climbed to 53.2 (52.5 estimated).
EUR/USD advanced 0.6% to a two-week high of 1.0941. The European Central Bank kept its key interest rates unchanged as expected.
Further, the central bank reduced the interest rate on TLTRO (longer-term refinancing operations, loans that ECB provides to European banks) to 50 basis points below the average interest rate on the Eurosystem's main refinancing operations.
Meanwhile, official data showed that the eurozone's economy contracted 3.8% on year in the first quarter (-3.4% expected), while jobless rate edged up to 7.4% in March (7.8% expected) from 7.3% in February. Also, CPI grew 0.4% on year in April (+0.1% expected).
Source: GAIN Capital, TradingView
GBP/USD climbed 0.9% to 1.2574.
USD/JPY gained 0.5% to 107.24, snapping a six-day decline.
USD/CAD rebounded 0.6% to 1.3966. Government data showed that Canada's GDP was flat on month in February (+0.2% expected).
Other commodity-linked currencies also retreated against the greenback. AUD/USD sank 1.1% to 0.6484 and NZD/USD dipped 0.5% to 0.6105.
China's official Manufacturing PMI fell to 50.8 in April (51.0 expected), while non-manufacturing PMI climbed to 53.2 (52.5 estimated).
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Tankan Backs BOJ Tightening, but Yen Rate Expectations Ease
Japan’s Tankan supports further BOJ tightening, although softer rate expectations could limit support for the Japanese yen.
AUD/USD hammered by US yields and fading RBA hike bets
US yields, dollar strength and fading RBA hike bets have combined to drive AUD/USD to fresh multi-month lows. The macro and technical bias remains bearish, although history suggests parts of the move are now reaching unusually stretched levels.
Japanese Yen Outlook: USD/JPY, GBP/JPY, AUD/JPY Setups
USD/JPY and GBP/JPY show signs of stabilising, while AUD/JPY remains vulnerable as yen crosses deliver mixed technical signals.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.