Economic data from France and Germany failed to spur a EUR rally. Eurozone inflation figures due out later today will influence, however, ahead of data from the U.S.
Inflation and unemployment figures were in focus in the early part of the European session this morning. Later today, prelim June inflation figures for the Eurozone will also draw interest, as sensitivity to inflation lingers.
In June, the annual rate of inflation ticked up from 1.4% to 1.5% based on prelim figures. This was in line with forecasts.
According to Insee.fr,
In June, unemployment fell by 38k, following on from a 19k decline in May. Economists had forecast a more modest 20k fall. In spite of the larger than expected drop, the unemployment rate held steady at 5.9%.
Ahead of today’s stats, the EUR had risen to a pre-stat and current day high $1.19090 before falling to a pre-stat low $1.18960.
In response to the French inflation figures, the EUR rose to a post-stat high $1.19081 before falling to a current day low $1.18931.
The EUR found support, however, with unemployment change figures from Germany beating forecasts. With unemployment holding steady at 5.9%, the upside to the EUR is likely to be limited ahead of the Eurozone inflation figures.
Recovering from the current day low, the EUR rose to a post-stat high $1.19050 before easing back
At the time of writing, the EUR was up by 0.05% to $1.19022.
Eurozone inflation figures ahead of ADP nonfarm employment change and Chicago PMI numbers from the U.S. Pending home sales figures from the U.S are also due out but should have a muted impact on the markets.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.