Euro erreicht beinahe 22-Monats-Tiefstand

The euro was close to 22-month lows on Friday as traders waited to see whether the outstanding US GDP data would reinforce the signs of economic strength and push the dollar higher.

After a slight increase in volatility this week – albeit from multi-year lows – the currency markets were quiet at the European opening, with most major currency pairs in tight margins.

New orders for capital goods manufactured in the US rose the most in eight months in March. This was followed by other recent US data that has eased fears of a drastic slowdown in the world’s largest economy.

Data today is expected to show that US gross domestic product (GDP) rose 2.0 percent year-over-year in the first quarter, according to CNBC.

“In the next few days, the focus could return to Europe,” the ING analysts said in a statement. They pointed to the election in Spain on Sunday, an S & P review of Italian sovereign debt and possible French economic reforms.

The Bank of Japan set a timeframe for its outlook for the first time on Thursday by telling investors that it will keep interest rates at an extremely low level for at least another year to clear any doubt about its commitment to extremely loose guidelines to disperse.

“The Chinese PMI and the US non-farm jobs report are due next week and both are expected to be quite good. There is also the next round of trade talks between the US and China that could further increase risk appetite, “said Mitsuo Imaizumi, chief foreign exchange strategist at Daiwa Securities.

“The market may therefore see a significant increase in risk during the Japanese holiday, pushing the dollar / yen down to 113.00 yen.”

The Aussie has lost nearly two percent this week, reaching a low of almost four months as domestic product inflation data boosted the prospect of a Reserve Bank of Australia rate cut.

The pound sterling, which has suffered from dollar strength this week and concerns that the Brexit talks between ruling Conservatives and Labor’s opposition partners would falter, has returned to $ 1.29 highly worked.

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