Euro Slightly Higher, EU-US Meeting in Focus
Euro shows slight increase versus US dollar in anticipation of the meeting between European Commission President Jean-Claude Juncker and US President Donald Trump. The EUR/USD pair rose by 0.11% to trade at 1.1697 level. The talks come after the US imposed tariffs on European Union steel and aluminum and Trump's threats to extend those measures to EU-made cars.
Investors also expect the European Central Bank policy meeting on Thursday for direction. The ECB guided markets for steady rates "through the summer" of 2019 at a meeting last month, when it also announced it would shut its signatory bond-purchasing program in December.
The ECB reported today, that the volume of money supply in the Eurozone grew at a faster pace in June, while the growth in lending to the private sector slowed. Eurozone M3 money supply grew by 4.4% compared to the previous year in June, after an increase of 4% in May. It was expected that the rate will remain unchanged at 4%.
The Eurozone private sector lending grew at a slower pace of 2.8% in June, after rising 3.1% in May. Nevertheless, the annualized rate of private loans improved to 3.5% from 3.3%.