3 Dec 2014
Euro at new lows on weak data – BBH
FXStreet (Barcelona) - Research Analysts at Brown Brothers Harriman, note that Euro fell to a new low near 1.2325 levels following weaker PMI numbers.
Key Quotes
“The composite figure came in at 51.1 vs. 51.4 consensus. Looking at the country breakdown, German composite came in at 51.7 vs. 52.1 consensus, French composite came in at 47.8 vs. 48.4 consensus, and the Italian composite surprised on the upside at 51.2 vs. 49.6 consensus. The UK also went against the trend to deliver an upside surprise with the composite figure at 57.6 compared with 56.2 expected. Eurozone retail sales were also weaker than expected. The October reading rose 1.4% y/y compared with 1.6% expected.”
“The dollar is mixed on the day against the majors. The euro fell to a new cycle low near $1.2325, in part following weaker PMI numbers. Sterling is holding up well after it released better than expected PMI data, now at $1.5660. The Australian and New Zealand dollars are marginally weaker, while the loonie is the best performer today in the majors.”
“The dollar is testing the ¥119.50 against the yen. EM currencies are mostly softer, and we note that USD/MXN is trading with a 14 handle for the first time since mid-2012 and COP continues to weaken, trading at levels not seen since 2009. RUB is outperforming, up nearly 1.5% given the modest bounce in oil prices.”
Key Quotes
“The composite figure came in at 51.1 vs. 51.4 consensus. Looking at the country breakdown, German composite came in at 51.7 vs. 52.1 consensus, French composite came in at 47.8 vs. 48.4 consensus, and the Italian composite surprised on the upside at 51.2 vs. 49.6 consensus. The UK also went against the trend to deliver an upside surprise with the composite figure at 57.6 compared with 56.2 expected. Eurozone retail sales were also weaker than expected. The October reading rose 1.4% y/y compared with 1.6% expected.”
“The dollar is mixed on the day against the majors. The euro fell to a new cycle low near $1.2325, in part following weaker PMI numbers. Sterling is holding up well after it released better than expected PMI data, now at $1.5660. The Australian and New Zealand dollars are marginally weaker, while the loonie is the best performer today in the majors.”
“The dollar is testing the ¥119.50 against the yen. EM currencies are mostly softer, and we note that USD/MXN is trading with a 14 handle for the first time since mid-2012 and COP continues to weaken, trading at levels not seen since 2009. RUB is outperforming, up nearly 1.5% given the modest bounce in oil prices.”