The U.S. Dollar gained a reprieve against the Euro as disappointing PMI data released yesterday showed that business activity in the Eurozone remained weak in spite of efforts by the central bank.
As reported at 1:45 p.m. (JST) in Tokyo, the Euro was trading at $1.2972 against the U.S. Dollar, after falling more than 0.6% on Thursday; this past Monday, the EUR/USD struck a 4-month high of $1.3173 but has since lost nearly 2% of that value. The Eurozone’s debt woes continue to be a drag on the economy, and there is renewed speculation now that Greece will once again have to restructure existing debt, all of which is likely to put some pressure on the Euro in the short term.
The Euro’s retreat helped to give a lift to the U.S. Dollar Index, the components of which include the Euro among other major currencies; at one point earlier the index was trading at a 1-week peak of 79.660 .DXY, well above the 6-month low set last Friday when it struck 78.601 .DXY.
Beginning with PMI data from China yesterday, the flurry of global PMI’s from the Eurozone and the U.S. added to the gloomy sentiment and highlighted the difficulties that global policymakers are facing even as they rush to print currency.