Forex trends Monday: Euro retraces some recent gains amid weaker economic data

Euro coinsPhoto by Leslie Shaffer

The euro gave up some of its recent gains on Friday, while the pound sterling retraced some of its recent losses on hopes the U.K. may at least delay Brexit.

Kathy Lien, managing director of foreign-exchange strategy at BK Asset Management, noted the euro was one of the few currencies to lose ground against the greenback last week.

“While investors may be selling U.S. dollars, they are not parking their money into euros because the economy is weakening and the political risks are growing, she said in a note on Friday. “The protests in France are ongoing and the latest German factory orders and industrial production reports show how the drag from global trade tensions is hurting the economy.”

But she noted that sterling gained on reports the U.K. Parliament could reject Prime Minister Theresa May’s Brexit plan, which could delay they country’s exit from the European Union.

She had a caveat, however: “If the divorce date is not immediately delayed, GBP could extend its losses quickly.”

Currencies

The U.S. dollar index was at 95.63 at 9:08 A.M. SGT, after touching levels as high as 95.75 after rising from as low as 95.25 on Friday, according to ICE futures data.

The 10-year U.S. Treasury note yield was at 2.704 percent at 2:46 A.M. SGT, according to Tullett Prebon data. Japan’s market was closed on Monday for a holiday.

The euro/dollar was at 1.1468 at 9:25 A.M. SGT after trading in a 1.1459 to 1.1541 range on Friday, according to DZHI data.

The British pound/dollar was at 1.2850 at 9:25 A.M. SGT after trading in a 1.2708 to 1.2866 range on Friday, according to DZHI data.

The dollar/yen was at 108.416 at 9:25 A.M. SGT after trading in a 108.12 to 108.598 range on Friday, according to DZHI data.

The dollar/yuan was at 6.7447 at 9:33 A.M. SGT after trading in a 6.7371 to 6.7899 range on Friday, according to DZHI data.

The dollar/Singapore dollar was at 1.3520 at 9:26 A.M. SGT after trading in a 1.3493 to 1.3540 range on Friday, according to DZHI data.

The dollar/Malaysian ringgit was at 4.0920 at 9:18 A.M. SGT after trading in a 4.0896 to 4.0990 range on Friday, according to DZHI data.

The dollar/Indonesian rupiah was at 14,037 at 9:25 A.M. SGT after trading in a 14,010 to 14,090 range on Friday, according to DZHI data.

 

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