The Euro is Near Seven-week Low, Dollar index is on Track

Let’s see what the situation in the international foreign exchange market for the Weekend is. Yen and yuan are not in the center of attention today.  On Friday, the euro held near seven-week lows. At Thursday’s meeting, the European Central Bank struck a more dovish tone than some expected.

Investor’s attention is now at the flash PMI releases for January. The statements are some of the first indicators of how the global economy performed moving into 2020.

The German PMI figures, the critical data, and the eurozone will most probably arise from previous readings. The higher-than-expected readings might trigger a rally.

Against the dollar, the euro fell to $1.1049. Against the British pound, the dollar was near a five-week low. The Dollar Against the Swiss franc was near 33-month low.

An FX strategist at Commerzbank based in Frankfurt is a Thu Lan Nguyen.

Euro and Others

After Thursday’s meeting, President of ECB, Christine Lagarde, said that risks to eurozone growth remained tilted towards downside. Her tone was dovish for the markets.

The head of foreign exchange at State Street Bank is Kazushige Kaida. He said that some people were hoping that Lagarde would talk about the possibility of policy normalization. Late Last year, Riksbank ended with a negative interest rate. Nevertheless, there was no such indication from her.

Riksbank is the central bank of Sweden. Last month it ended with five years of negative interest rates, despite a slowdown in the Swedish economy.

The dollar index was on track for a third consecutive week of gains and held at 97.717.

The Australian dollar erased the gains made after an active job report yesterday. The currency traded at $0.6843. It is heading for a fourth consecutive week of losses.

As you see, the euro fell against the dollar. The dollar was on track. The situation is not very bad.