Euro Continues Downward Trend

Forex News

The euro remains weak against the US dollar. The euro/dollar pair lost another 0.30% and is trading at 1.1926. Today’s Eurozone and German economic data gave no boost to the single currency. Eurozone Retail PMI fell to 48.6, marking the first reduction since March 2017.

Investor morale in the Eurozone declined for the fourth month in a row this month to its lowest level since February 2017. Eurozone Sentix Investor Confidence fell to 19.2 from 19.6 in April. Economists forecast a rise to 21.0. The index of the current economic situation slightly decreased to 42.8 from 43.0 a month ago. Similarly, the index of expectations for further economic development fell to -2.0 in May from -1.5 in April.

German industrial orders unexpectedly fell for the third month running in March due to weak foreign demand, suggesting that factories in Europe's largest economy are facing headwinds from rising protectionism. Data from the Federal Statistics Office showed that German Factory Orders fell 0.9% after a downwardly revised drop of 0.2% the previous month. Analysts had on average predicted a 0.5% rise in orders.

Last week’s data showed, that US economy added 164.000 jobs in April. The data was lower than the consensus estimate for the creation of 189.000 jobs. The unemployment rate fell from 4.1% to 3.9%, beating consensus expectations for it to slip to just 4.0%. April's reading is the lowest level since 2000. Average hourly earnings rose by 0.1% month-on-month in April, below expectations for a 0.2% gain. The data did not change the idea that the Federal Reserve is likely to raise interest rates at least twice, and perhaps three times, by the end of the year.