The euro took an early knock on reports that the German Interior Minister Horst Seehofer had rejected a migration deal German Chancellor Angela Merkel negotiated at a European Union summit on Friday. The currency then bounced on news Seehofer had offered to step down as minister and as chair of his Christian Social Union (CSU) party. The risk-off tone persisted also due to a sharp sell-off in oil prices, as markets digested the weekend’s tweet by the US President Trump and amid prospects of higher output from Saudi Arabia. The Mexican Peso emerged strong after the exit polls showed the leftist outsider Andres Manuel Lopez Obrador won the Mexican presidential election. Meanwhile, both the EUR and GBP traded with moderate losses with looming German and UK political concerns.
The macro calendar for today remains quite eventful, with a raft of final manufacturing PMI reports to be released from across the Euro area economies, followed by the key UK manufacturing PMI release, which is expected to come in at 53.5 in June versus 54.4 previous. Also, of note will be the Eurozone PPI and jobless rate figures, although they will have virtually no impact on the Euro, as the sentiment around the German political climate will continue to drive the EUR markets in the session ahead. However, thin trading will prevail on the back of Canada Day holiday.
Eyes on UK manufacturing report; German politics impact Euro
Published on 2018-07-02 07:18
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