Euro set for 1.0% Weekly Decline Versus Greenback

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Euro set for 1.0% Weekly Decline Versus Greenback

AUGUST 16, 2019

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Overview

The U.S. dollar is mostly stronger this morning including a decent jump against the Euro.  U.S. equities also look to open higher after a rough week, allowing the greenback to gain versus the safe-haven Japanese yen and Swiss franc.

The U.S. economic docket showed fresh signs for concern this morning but has not yet dented the risk-on sentiment.  U.S. housing starts dropped 4% in July, failing to meet estimates of a 0.2% gain.  June’s number was also downwardly revised.  However, total building permits rose 8.4%.
The University of Michigan consumer sentiment will round out the week at 10 a.m.

What to Watch Today…

  • University of Michigan consumer sentiment at 10 a.m.

Complete Economic Calendar can be found here.

EUR

EUR/USD is lower again this morning.  The Euro took a dive during yesterday’s session after dovish comments from European Central Bank policymaker Olli Rehn.  Rehn said that the committee should come up with a “significant and impactful policy package in September.”  He added to the bearish sentiment by saying it was better to “overshoot than to undershoot.”  EUR/USD is down 1.1% so far this week.

GBP

The sterling rallied overnight and is actually headed for its first weekly gain versus Euro in three months. The pound is set to gain nearly a percent versus the U.S. dollar this week.  There was no major data released today so it appears the sterling is finding relief as opposition leader Jeremy Corbyn attempts to stop the possibility of a no-deal Brexit. His move to force a no-confidence vote and move towards a general election has had a tepid response with MPs.

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