Euro - Dollar Exchange Rate Today - EUR USD Holds as Both Currencies Find Support

July 24, 2014 - Written by Ben Hughes

STORY LINK Euro - Dollar Exchange Rate Today - EUR USD Holds as Both Currencies Find Support

Exchange Rates Today - The Euro (EUR) to Dollar (USD) and Pound Sterling (GBP) rate recovered from 8 and 22-month lows respectively on Thursday after data showed that manufacturing and service sector activity increased this month.

At the start of European trading things didn’t get off to a very good start for the Euro as data out of France showed that the Eurozone’s second largest economy saw its private sector shrink again. Markit’s manufacturing output index declined to a 15-month low of 45 in July, a drop from the already weak figure of 47.6 seen in June.

The overall French manufacturing PMI fell to 47.6 from 48.2, a 7-month low. There was some glimmer of hope for France however as the nation’s service sector once again posted a PMI figure above the 50 level which divides contraction from expansion.

“Companies reported that further price cutting was insufficient to hold back the receding tide in new business, as the weak demand environment continued to stoke intense competitive pressures. PMI data remain consistent with quarterly GDP close to stagnation levels, as the economy continues to show little sign of turning around its recent sluggish performance,” said a senior economist at Markit.

As the session progressed the negative French data was countered by a strong showing from Germany. The data further highlighted the diverging trends of the Eurozone’s top two economies.
German manufacturing PMI increased from last month’s figure of 52.0 to 52.9 and the nation’s service sector PMI jumped sharply from 54.6 to 56.6 marking the strongest increase in activity for 37 months. The overall German private sector improved to a three month high of 55.9.

Following the release of the German data the EUR/USD exchange rate increased by 0.3% to $1.347. The rise came shortly after the French Prime Minister once again called for a weaker Euro.

Economic activity across the wider Eurozone also showed improvement in July. The data reduced some of the concerns that the regional economic recovery had stalled. The PMI for both the manufacturing and service sectors increased to 54 in July to match a three-year high recorded in April.

“Overall growth in Eurozone manufacturing and services output improved appreciably and provides some much needed and welcome good news. Today’s data lifts hopes that the Eurozone economy can gradually gain traction over the second half of the year after a disappointing and lacklustre first half,” said Howard Archer from IHS Global Insight.

The US Dollar (USD) exchange rate managed to regain ground against the Pound and other major peers after the latest US jobless claims data showed that the number of American filing for unemployment benefits fell by 19,000 to 284,000 in the week ending on July 19th. The gains made from the data however were quickly restrained after a separate report showed that manufacturing activity fell from the previous month.

According to Markit’s Manufacturing PMI report, activity dropped from June’s figure of 57.3 to 56.3 in July. The figure was softer than economist forecasts but remains firmly in expansion territory. Factory output grew strongly to come close to a four-year high.

Also weighing upon the ‘Greenback’ was another report which showed that new home sales in the country fell from May’s figure of 504,000 to 406,000 in June.

The Euro could make further gains on Friday if the latest Confidence data out of Germany comes in positively.

EUR/USD Maintains Steady Position - Update 26/07/2014

The Euro to Dollar was holding steady as both currencies received support from positive data. The USA’s jobless claims data came in above forecasts and increased speculation that the Federal Reserve could raise interest rates sooner than expected. The Euro exchange rate meanwhile found support from the release of stronger than expected manufacturing and services PMI data.

Updated Euro Exchange Rates - End of Week Trading Figures 26/07/2014

The Euro to Australian Dollar exchange rate is 1.42934 EUR/AUD.
The Euro to Canadian Dollar exchange rate is 1.45217 EUR/CAD.
The Euro to Pound exchange rate is t0.79111 EUR/GBP.
The Euro to New Zealand Dollar exchange rate is 1.56927 EUR/NZD.
The Euro to Lira exchange rate is 2.81290 EUR/TRY.
The Euro to Dollar exchange rate is 1.34291 EUR/USD.

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