Euro Supported by Strong Data from Germany
Against the US Dollar, the common currency Euro inched higher to a 3-week peak on the latest economic news out of Germany, the EU's economic powerhouse. According to Deutsche Bundesbank, Germany's own central bank, factor orders picked up in May, both on a monthly and annual basis, climbing to 2.6% and 4.4%, respectively, against forecasts of 1.1% and 1.7%. Analysts say that that domestic demand as well as an increase in Eurozone customers helped push the figures higher, a welcome sight for investors after four straight months of declines. That news could help the voting members of the European Central Bank decide on the timing of the next rate increase, which analysts say could be as soon as September.
As reported at 11:21 am (BST) in London, the EUR/USD was trading at $1.169, a gain of 0.28% and off the session peak of $1.17110, while the low for the trading day is at $1.16499. The EUR/GBP is trading at 0.8817 Pence, a gain of 0.10%; the pair has ranged from a trough of 0.88076 Pence to a peak of 0.88414 Pence.
Theresa May Hoping for Support
In the UK, the Pound continues to find support and is trading higher against the US Dollar, with the GBP/USD trading at $1.3257, up 0.20%. Analysts point to recent signs that the UK is finally recovering, which has heightened expectations of a Bank of England rate increase next month. As always, concerns about the Brexit talks remain on the periphery and threaten to break momentum at a moment's notice. Another key Brexit meeting will take place tomorrow and Theresa May, the UK Prime Minister, is hoping that she can get the full cooperation of her government to support her efforts. Analysts say that getting total support of the battling government factions is unlikely.