Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

EUR/USD Slips To New Lows On Good U.S. Data

By Kathy LienCurrenciesMar 25, 2021 20:39
uk.investing.com/analysis/eurusd-slips-to-new-lows-on-good-us-data-200465464
EUR/USD Slips To New Lows On Good U.S. Data
By Kathy Lien   |  Mar 25, 2021 20:39
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
EUR/USD
-0.06%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GBP/USD
-0.83%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AUD/USD
-0.17%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NZD/USD
-0.23%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CAD/USD
-0.10%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-0.28%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Stronger than expected economic reports drove the U.S. dollar higher against all of the major currencies. There’s no question that of the G3 currencies (USD, EUR and JPY), the U.S. is leading the recovery, and data is beginning to show the benefits of a smooth coronavirus vaccine rollout. Seventy percent of Americans 65 or older have received at least one COVID-19 vaccine dose, with more than a third of the overall adult population receiving their first jab. Businesses are reopening and economic activity is accelerating. As a result, jobless claims fell to 684,000, its lowest level in more than a year. Fourth quarter GDP growth was also revised up to 4.3% from 4.1%. The U.S. economy is still a long way from normal, but the numbers show that it is moving in the right direction. With more Americans getting vaccinated every day, further improvements are likely. Personal income and spending numbers are due for release tomorrow.
 
While investors bought U.S. dollars, stocks did not turn higher until after the London close. The reluctance can be partly attributed to Federal Reserve Chairman Jerome Powell’s comments on NPR’s Morning Edition. For the first time since the pandemic began, he talked about a future with less stimulus. Powell said: “As we make substantial further progress toward our goals, we’ll gradually roll back the amount of Treasuries and mortgage-backed securities we’ve bought.” However, all of this would be predicated on a strong recovery, which is ultimately positive for U.S. assets and explains why equities recovered their losses to end the day up.
 
Fewer restrictions and more vaccinations stand in stark contrast with Europe, where fresh lockdown measures were announced this month for Germany, France and Italy. Compared to the U.S., only 9% of the German population have received their first shot. We have been bearish euros all month, and that will remain true regardless of tomorrow’s IFO report. German business confidence may be bolstered by the stronger PMIs, but confidence in the region will be restrained until the government gets better control of the latest wave. ECB member Luis De Guindos sees Eurozone GDP contracting in the first half of the year. EUR/USD dropped below 1.18 for the first time since November and it may not find support until the 50-week SMA at 1.17. 
 
Sterling, on the other hand, snapped a five-day decline to end the day higher against the U.S. dollar. The UK is in a very difficult position with COVID-19. Like the U.S., its vaccine rollout program has been quick and aggressive. More than 50% of its adult population received their first shot, and this will pay dividends for the economy. Retail sales are due for release on Friday, and we are looking for a solid increase after last month’s sharp decline. 
 
The Australian and New Zealand dollars erased earlier gains to end the day lower against the greenback, whereas the Canadian dollar started the day under pressure. Although New Zealand’s trade balance returned to surplus, investors cannot look past the government’s recent steps to curb housing price increases. No data was released from Canada, but oil prices resumed their slide and, more importantly, Canada’s Supreme Court ruled the carbon tax law is constitutional. Reducing greenhouse gas emissions is a top priority for the government and this tax, which is bad for the industry, is something it would have had to deal with eventually. 
EUR/USD Slips To New Lows On Good U.S. Data
 

Related Articles

ING Economic and Financial Analysis
Hawkish Fed Hike Can Keep U.S. Dollar Bid By ING Economic and Financial Analysis - Sep 21, 2022

We expect a 75bp rate hike by the Fed today, accompanied by a hawkish tone and Dot Plot projections which may show a terminal rate around 4.25-4.50%. We think this could keep risk...

EUR/USD Slips To New Lows On Good U.S. Data

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
William Day
William Day Mar 26, 2021 7:16
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Really appreciate Kathy Lien's market summaries. Keep them coming!
ashiqur rahman
ashiqur rahman Mar 26, 2021 1:37
Saved. See Saved Items.
This comment has already been saved in your Saved Items
please give me a concept....
ashiqur rahman
ashiqur rahman Mar 26, 2021 1:26
Saved. See Saved Items.
This comment has already been saved in your Saved Items
akhon. kon dike jete pare..?buy or sell..?
ashiqur rahman
ashiqur rahman Mar 26, 2021 1:26
Saved. See Saved Items.
This comment has already been saved in your Saved Items
akhon. kon dike jete pare..?buy or sell..?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email