European currency shows recovery

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The euro / dollar makes up for last Friday’s loss. This concludes Monex Europe’s Currency Analyst Ima Sammani on Monday.

“After having suffered from strong US Purchasing Managers’ data on Friday, the euro/dollar is running into losses again today, ” says Sammani.

The Purchasing Managers Index for the US services sector rose from 64.7 in april to 70.1 this month. The preliminary index for industry improved from 60.5 to 61.5. This brought the combined purchasing managers index to 68.1. That was 63.5 a month earlier.

Markit’s economist Chris Williamson spoke of a” spectacular acceleration ” in May. And if the supply chain had not been disrupted, growth would have been even stronger, the economist added.

Monex’s currency analyst believes the focus this week is on easing the coronavirus measures. Furthermore, traders will look forward to a French inflation rate. According to Sammani, French consumer prices are likely to have increased further. It is also counting on a strengthening of business confidence in Germany.

The euro/dollar traded on Monday at lunchtime at 1.2207.

About the author

Nicholas de Kramer

Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at [email protected]

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