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Forex - Euro holds steady in Asia ahead of ECB meeting

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Investing.com -

Investing.com - The euro was in focus in Asia on Thursday ahead of a meeting by the European Central Bank expected to ease policy and Friday's U.S. non-farm payrolls.

EUR/USD traded at 1.3601, up 0.02%, early in Asia.

In Asia, Australia kicks off the data releases at 1130 Sydney time (0130 GMT) with the April trade balance, with an A$300 million surplus expected.

AUD/USD held at 0.9278, up 0.01%, ahead of the data.

Then the May HSBC China Services PMI is due at 0945 Beijing (0145 GMT), which last came in at 51.4, and recent Chinese PMIs have had an upward bias so the direction of the monthly change will be important. The composite PMI also comes out at the same time, and was last at 49.5.

Overnight, the dollar turned mixed against the other major currencies as the release of weak U.S. economic reports dented demand for the greenback.

Payroll processing firm ADP said non-farm private employment rose by 179,000 in May, below expectations for an increase of 210,000. April's figure was revised down to a gain of 215,000 from a previously reported increase of 220,000.

A separate report showed that U.S. trade deficit widened to $47.24 billion in April, from $44.18 billion in March whose figure was revised from a previously estimated deficit of $40.40 billion. Analysts had expected the trade deficit to widen to $40.80billion in April.

Meanwhile, sentiment on the euro remained vulnerable after Eurostat on Tuesday said consumer price inflation in the euro zone increased by 0.5% last month, down from 0.7% in April and missing expectations for a reading of 0.7%. The rate stands well below the ECB target of near but just under 2%.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was flat at 80.71.

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


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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