20 Jul 2015
EUR/USD hit fresh highs but remains near multi-month lows
FXStreet (Córdoba) - The euro attempted to recover against the US dollar but after hitting a fresh daily high at 1.0872 during the American session, pulled back to 1.0850, where currently trades, marginally higher for the day .
Earlier it bottomed at 1.0819, where May lows lie but it managed to hold above and rebounded modestly, unable to move away from the 1.0820 area. EUR/USD remains under pressure as the US dollar continues to show resilience.
Between Greece, PMI and the Fed
For the first time there wasn’t a weekend with a key deadline for Greece. Today Greek banks are partially open. The relatively calm among negotiations pushed the attention but to the economy in the Eurozone. On Friday the release of the preliminary PMI manufacturing index could add details about the state of the economy. “The economy responds with a lag to financial conditions. The euro, European interest rates, and oil did not continue to provide the stimulus that they had earlier. The regional economy appears to be stabilizing at a modest level, rather than continuing to accelerate”, wrote analysts from Brown Brother Harriman.
In the US, eyes remain on the Federal Reserve and whether or not will they raise rates. Today, James Bullard, President of the Saint Louis Fed said that the chance of a hike in September is above 50%.
Earlier it bottomed at 1.0819, where May lows lie but it managed to hold above and rebounded modestly, unable to move away from the 1.0820 area. EUR/USD remains under pressure as the US dollar continues to show resilience.
Between Greece, PMI and the Fed
For the first time there wasn’t a weekend with a key deadline for Greece. Today Greek banks are partially open. The relatively calm among negotiations pushed the attention but to the economy in the Eurozone. On Friday the release of the preliminary PMI manufacturing index could add details about the state of the economy. “The economy responds with a lag to financial conditions. The euro, European interest rates, and oil did not continue to provide the stimulus that they had earlier. The regional economy appears to be stabilizing at a modest level, rather than continuing to accelerate”, wrote analysts from Brown Brother Harriman.
In the US, eyes remain on the Federal Reserve and whether or not will they raise rates. Today, James Bullard, President of the Saint Louis Fed said that the chance of a hike in September is above 50%.