The EUR Under Pressure After The Eurozone Flash PMI - APAC Update

Xe Corporate APAC

March 24, 2019 3 min read

The AUDUSD opened at 0.7082 (mid-rate), and the NZDUSD opened at 0.6875 (mid-rate) this morning.

APAC Update

The NZD direction will be dictated by Wednesday’s RBNZ MPS ahead of Thursday’s business confidence data release and RBNZ Gov Adrian Orr’s speech on the future of New Zealand’s monetary policy framework due for release on Friday morning.

By virtue of its safe-haven status the JPY is the best performing of the G10 currencies, making headway against all its rivals, despite the latest survey from Nikkei showing its manufacturing sector continues to contract at a steady pace.

Europe/US Data

The EUR came under pressure on Friday after Market reported Eurozone flash PMI’s for the month of March came in well below economists’ forecasts. Germany’s flash manufacturing PMI recorded its 14th fall in the last 15 months with the index tumbling to its lowest reading in more than 6-years. According to the HIS Market report the index registered 44.7 in March having peaked at a record high of 63.3 at the end of 2017.

The Eurozone flash Composite Purchasing Managers' Index, which combines manufacturing and services, fell to a two-month low of 51.3 in March down from 51.9 in February. Economists had forecast the index to inch up to 52.0.

Global economic growth concerns along with the lack of progress in the ongoing US-China trade talks saw European and US equity markets pull back sharply on Friday.

European and US equity markets fell sharply on Friday, -

Dow -1.77%, S&P 500 -1.90%, FTSE -2.01%, DAX -1.61%, CAC -2.03%, Nikkei +0.09%, Shanghai +0.09%.

Gold prices edged higher on Friday, gaining 0.4% closing out the week at $1,313 an ounce.

WTI Crude Oil prices fell 1.5% on Friday, closing out the week at $59.26 a barrel.

Mid-market Rates
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