- The EUR/USD quotes about 1,1475, its lowest level since June 23, marking a fifth consecutive daily fall.
- The euro is pressured by a strong US dollar and robust economic data from the USA.
- The US ADP data data exceeds forecasts, showing 104k jobs won in July, reversing the contraction of the previous month.
The euro (EUR) is in decline for fifth consecutive day against the US dollar on Wednesday, affected by a stronger dollar and ongoing concerns about the recently announced commercial agreement between the US and the EU, which many investors see as biased in favor of Washington. The euro is still under pressure as the attention focuses on the Federal Reserve Policy Decision (FED) that will be released later on Wednesday.
The EUR/USD torque is giving ground, oscillating near its weakest level since June 23. At the time of writing, the PAR is negotiated around 1,1475 during the American negotiation hours, with a fall of more than 2.0% so far this week. The bearish impulse reflects the growing pressure on the euro in the middle of a generalized fortress of the US dollar, fueled by US resilient economic data and growing expectations that the Fed will maintain interest rates without changes for now.
A new lot of solid economic data from the US reinforced the bullish impulse behind the US dollar, keeping the EUR/USD near minimums of several weeks. The ADP employment change report showed that US private sector jobs increased by 104,000 in July, exceeding the 78,000 forecast and drastically reversing the June -23,000 jobs contraction (revised of -33,000).
The economic resilience signals continued with the Gross Domestic Product (GDP) of the second annualized quarter that reached 3.0%, well above the consensus estimate of 2.4% and bouncing strongly from the contraction of 0.5% of the anterior quarter. The optimistic growth figures were complemented by the Personal Consumption Expenditure Price Index (PCE), the inflation indicator preferred by the Fed, which rose an intertrimestral 2.5% in the second quarter, slightly above the 2.4% expected, although notably below 3.5% of the previous quarter. Meanwhile, the GDP price index cooled to 2.0%, below the 2.4%estimate, and the main PCE fell to 2.1%from 3.7%, pointing to greater deflation. The general tone of the data suggests that the US economy remains in a solid base with persistent underlying inflation, justifying the waiting approach and seeing the Fed.
On the other side of the Atlantic, the preliminary estimation of Eurostat showed that the eurozone economy grew 0.1% in the second quarter, modestly ahead of flat growth expectations. In annual terms, the block expanded 1.4%, supported by better performance in Spain, France and Ireland, which helped compensate minor contractions in Germany and Italy. Meanwhile, the feeling data of the Eurozone painted a slightly more optimistic picture for July, although they did little to improve the fortune of the euro. The economic feeling indicator (ESI) rose to 95.8, its highest level in five months and above the market expectations of 94.5, suggesting some stabilization in business confidence. The feeling of services also improved 4.1, exceeding the forecasts of 3.3. In addition, the industrial feeling rose to -10.4 From -11.8, slightly better than the forecast of -11.2, while consumer confidence remained unchanged in -14.7, in line with preliminary estimates.
Looking ahead, the market approach will be firmly transferred to the Fed monetary policy decision and the press conference of President Jerome Powell. While a change in interest rates is not expected, operators will be attentive to clues about the moment and conditions for any future adjustment.
Euro price today
The lower table shows the percentage of euro change (EUR) compared to the main currencies today. Euro was the strongest currency against the Australian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.60% | 0.28% | 0.33% | 0.25% | 0.72% | 0.49% | 0.48% | |
| EUR | -0.60% | -0.29% | -0.34% | -0.38% | 0.08% | -0.11% | -0.06% | |
| GBP | -0.28% | 0.29% | -0.04% | -0.02% | 0.41% | 0.22% | 0.25% | |
| JPY | -0.33% | 0.34% | 0.04% | 0.00% | 0.47% | 0.25% | 0.25% | |
| CAD | -0.25% | 0.38% | 0.02% | -0.01% | 0.47% | 0.24% | 0.28% | |
| Aud | -0.72% | -0.08% | -0.41% | -0.47% | -0.47% | -0.19% | -0.15% | |
| NZD | -0.49% | 0.11% | -0.22% | -0.25% | -0.24% | 0.19% | 0.03% | |
| CHF | -0.48% | 0.06% | -0.25% | -0.25% | -0.28% | 0.15% | -0.03% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the euro of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the EUR (base)/USD (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
