Forex

The Euro rallies upon the released good economic indicators

By Forex Metal

Asian and European trading sessions

Euro: The euro continued its rally on Thursday as the concerns over the US economy rehabilitation increase. The EUR/USD increased and reached maximums at the level of $1,3090.

Positive Euro-zone fundamentals supported the euro against the Japanese yen. The Euro-zone Economic confidence showed growth to 101.3 in July, which was above the forecast of 99.1. German unemployment rate was at the level of its expectations at 7.6%, which was a decrease from the previous month’s rate of 7.7%. In addition, the Euro-zone Business climate indicator showed considerable growth above its forecasts as well.

The EUR/USD pair managed to establish maximums at the level of $1.3100.

US Dollar: The forecasted US GDP for the second quarter, which is planned to be released tomorrow, might show signs of the US economy rehabilitation slow-down. The indicator is expected to increase for 2.5% against the first quarter growth for 2.7%.

According to the Beige Book release, which was published yesterday, the slow-down of the US economy growth was seen in some of the sectors for the last couple months. 

British Pound: The sterling continued its growth as well and reached its 5-month maximum at the $1.5660 mark.

Japanese Yen: The yen rallied on Thursday and the USD/JPY reached the lowest level in a week. The USD/JPY dropped to the Y86.72 mark.

New-Zealand Dollar: According to the expectations, the Reserve bank of New-Zealand increased the principal rate to the level of 3.00%. But the statement, which followed the principal rate decision, mentioned the existing slow-down of the economic rehabilitation rate. Therefore, the national currency rate dropped.  

Oil: The oil traded around the $77 price per barrel during the morning trading.

American trading session

US Dollar: The released Initial jobless claims dropped to 457K, while the forecasted level was at 460K.

The US dollar weakness continued into the American session as well. The US stock markets dropped as corporate reports did not meet the investors’ expectations.

Oil: Positive US fundamentals pushed oil prices higher to the maximums of $78.49 per barrel.