The euro was yesterday’s main loser, feeling the heat of Eurozone’s disappointing PMIs and the dovish shift in the ECB’s language with regards to the Euro-area economic outlook. We also had a Norges Bank meeting, but with this Bank staying on course for a March hike, the Krone did not react much. Once again, the pound was the main gainer, following reports that DUP will support May’s plan B if it includes a definitive end date to the Irish backstop.
Eurozone PMIs Disappoint Again, Draghi Sees Downside Risks
The euro tumbled against all but one of the other G10 currencies on Thursday. It fell the most against GBP, CAD and NOK in that order, while the currency that failed to capitalize against EUR was SEK, with EUR/SEK staying virtually unchanged.
Yesterday was an ECB day, but traders have started selling euros well ahead of the announcement, due to the disappointment of the Euro area PMIs. Both the bloc’s manufacturing and service-sector indices have declined further, missing expectations of marginal increases. This dragged the composite index...
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