Euro reaches almost three-year highs against the Greenback

The Greenback extended its loses against the Euro last week, with the Euro rising to almost three-year highs against the currency. The Conference Board Consumer Confidence report posted a bearish 122.1, a drop from last month’s 128.2. The report showed a decrease in confidence in the outlook for both jobs and business conditions. However, consumers remained more confident in the ‘present’ conditions, with the related index creeping up to 156.6 from 154.9. The US Weekly Unemployment Claims also provided the Dollar with no support, posting a bearish 245k, down from the forecasted 240k.


Today will be see a busy start to the week as the markets open after the New Year. The Eurozone will be releasing a raft of Manufacturing PMIs from their largest economies; Spain, Italy, France and Germany. In the UK, the Manufacturing PMI for December will be released, expected to post 58. Across the pond, both Canada and the US will also be releasing their version of the PMI, with the US reading expected to post at 55.


On Wednesday, the UK will be releasing the UK Construction PMI, forecasted to post 53.2. The Eurozone will be releasing their Unemployment Change figures from both Spain and Germany, expected to both drop to -60.3k and -14k retrospectively. Across the pond, the US will be releasing their ISM Manufacturing PMI, forecasted at 58.3, as well as the FOMC meeting minutes from the December’s FOMC meeting.


The Eurozone are set to release the Services PMIs for their largest economies on Thursday. Spain, Italy, France and German will also be releasing their individual versions of these PMIs. The Eurozone will also be releasing a version of PMI for the Eurozone as a whole, expected to post 56.5. Back in the UK, the UK Services PMI is expected to post a bullish 54.1, up from last month’s 53.8. The net lending to individuals figure is also scheduled to be released, forecast at 4.9b. In the US, the Weekly Unemployment Claims figure is expected to post 244k, whilst the ADP Non-Farm Employment Change is expected to grow to 192k from last month’s 190k.


On Friday, the US will be releasing a raft of labour data, in the form of the Non-Farm Employment Change, Average Hourly Earnings and Unemployment Rate. The Non-Farm Employment Change is expected to drop from last month’s bullish 228k to 189k. Unemployment is expected to remain static at 4.1%, whilst Average Hourly Earnings is expected to increase to 0.3%. The US will also be releasing the ISM Non-Manufacturing PMI, forecasted at 57.8. Back in the Eurozone, the CPI Flash Estimate, expected at 1.4%. Germany will be releasing their Retail Sales figure, forecasted to post 1.1%. The day will end with FOMC member, Loretta Mester, participating in a panel discussion titled ‘Coordinating Conventional and Unconventional Monetary Policies for Macroeconomic Stability’ at the American Economics Association Conference.