Forex Trends Monday: Euro tumbles after PMI data misses forecasts

Euro coinsPhoto by Leslie Shaffer

The euro tumbled on Friday on weaker economic data, while the U.S. dollar gained as better-than-expected retail sales in November suggested Americans still can be counted on to spend heading into the holidays.

The euro fell after weaker-than-expected PMI data on Friday. IHS Markit’s Flash Composite PMI slumped to 51.3 for December, the lowest in three years, from November’s 52.7, compared with a Reuters poll forecast for a rise to 52.8, according to a Reuters report.

Dollar rises

Stephen Innes, head of Asia Pacific trading at OANDA, said on Monday that the dollar climbed in the wake of a strong U.S. retail sales report for November.

“The strength of this data makes a stark contrast to the shocking data overnight in both Europe and China,” Innes said in a note. “It confirms that the U.S. economy continues to outperform its peers by a considerable margin and suggest the U.S. dollar is still the king of the hill, benefiting from the world’s most robust economy and highest G-10 yields.”

Currencies

The U.S. dollar index was at 97.43 at 8:05 A.M. SGT, off a peak of as high as 97.69 in Friday’s session, but still well above the 97.12 at the start of Friday’s session, according to ICE futures data.

The 10-year U.S. Treasury note yield was at 2.89 percent at 8:17 A.M. SGT after touching levels as low as 2.874 percent on Friday, according to Tullett Prebon data.

The euro/dollar was at 1.1309 at 8:19 A.M. SGT after trading in a 1.1268 to 1.1365 range on Friday, according to DZHI data.

The British pound/dollar was at 1.2576 at 8:20 A.M. SGT after trading in a 1.2528 to 1.2665 range on Friday, according to DZHI data.

The dollar/yen was at 113.379 at 8:20 A.M. SGT after trading in a 113.18 to 113.675 range on Friday, according to DZHI data.

The dollar/yuan ended Friday at 6.9049 after trading in a 6.8797 to 6.9051 range during the session, according to DZHI data.

The dollar/Singapore dollar was at 1.3766 at 8:21 A.M. SGT after trading in a 1.3704 to 1.3774 range on Friday, according to DZHI data.

The dollar/Malaysian ringgit ended Friday at 4.1820 after trading in a 4.1780 to 4.1855 range during the session, according to DZHI data.

The dollar/Indonesian rupiah ended Friday at 14,575 after trading in a 14,490 to 14,580 range during the session, according to DZHI data.

Get the Shenton Wire morning briefing in your inbox