In a week full of economic activity, the community currency registers a marked decline.
He euro suffers a decline this Monday, July 24, due to the fact that the data on economic activity in the main economies of the Euro zone they turned out a lot weaker than anticipated, raising concerns in the markets at the start of a week that is also filled with important central bank meetings. Meetings in which investors are attentive to possible rate increases in both Europe and the US.
During a quiet session in Asia, the common European currency falls 0.4%, standing at US$1,1083 after the PMI indices revealed a more significant contraction of business activity in the Eurozone than expected for the month of July.
The pound sterling It also suffered a slight drop following the UK economic activity data, although it was less pronounced, down 0.1% to $1.2839.
the week is presented crucial for investors, since important meetings of central banks will take place. The Federal Reserve conclude its meeting on Wednesday, followed by the European Central Bank (ECB) the following day, and ending with that of the bank of japan on Friday. In addition, investors also will be waiting for the results from various large companies.
The expectations indicate that both the ECB and the Federal Reserve could raise rates by 25 basis points. The focus is on the signals they will send about possible decisions at their September meetings. If inflation indicators continue to weaken, this could allow the Fed to hint at a pause in its actions.
For his part, he Bank of Japan is considered the central bank most likely to surprise the marketand operators are considering the possibility of making adjustments to their yield curve control policy.
As a result of these developments, the Japanese yen strengthened against the dollar, declining 0.47% to 141.2 yen, while the euro was also down 0.7% to 156.6 yen.
Japan’s currency fell as low as 141.92 to the dollar last Friday on reports suggesting the Bank of Japan may keep its yield curve control policy unchanged, although volatility indicators have picked up ahead of the meeting.
Source: Ambito
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