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FOREX-Euro falls to a one-week low after weak manufacturing surveys

(There will be no London-based forex reports on April 19, andMonday, April 22, due to UK public holidays. Reuters will resumecoverage when markets reopen on April 23.)

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Saikat Chatterjee

LONDON, April 18 (Reuters) - The euro fell to a one-week lowon Thursday after weak manufacturing surveys in Europe raisedconcerns about an economy struggling to gain traction before thelong Easter weekend.

Activity in Germany's manufacturing sector shrank for afourth straight month in April, while a similar survey fromFrance also painted a bleak picture.

"Investors are worried about the health of the globaleconomy and the eurozone and the fortunes of the euro areclosely tied with that," said Ricardo Evangelista, a senioranalyst at ActivTrades in London.

The single currency was up as much as 0.1 percent before thedata but fell 0.4 percent to its lowest level since April 10 to$1.1244 after the data releases.

A week ago, European Central Bank President Mario Draghiraised the prospect of more support for the struggling euro zoneeconomy if its slowdown persist.

But the prospects of more stimulus has failed to lift thegeneral gloom over the euro's outlook.

The euro was still more than 2 percent below a 2019 high of$1.157. Investors have cut their holdings of the currency, withnet short bets at their highest in more than two years, according to latest positioning data.

The euro's decline comes amid a general drop in currencymarket volatility. A JP Morgan volatility index .JPMVXYG7 wasnear 2008 lows.

The dollar index .DXY against a basket of six majorcurrencies was nearly flat at 97.051, after dipping 0.05 percentthe previous day.

Commodity-linked currencies sagged after a surge in crudeoil prices ran out of steam.

The Australian dollar was flat at $0.7179AUD=D4 afterbriefly popping above $0.72 on strong jobs data for March.

saikat.chatterjee@thomsonreuters.com saikat.chatterjee.reuters.com@reuters.net


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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