By TraderVox.com
Tradervox.com (Dublin) – The 17-nation currency has declined against most of its major peers following speculations that a consumer confidence report set to be released on July 23 will show a weakening in consumer confidence and manufacturing sector in the region. The euro is set to record a fourth weekly decline against the yen, after Spanish bond yields surged in an auction yesterday. This has continued to put euro under scrutiny as investors avoid the currency for safe haven currencies. The US currency’s demand was boosted by the rising Dollar Index, which rose for the first time in almost a week; the demand for the dollar was supported by the weakening Asian stocks.
Talking about the consumer confidence report, Andrew Salter, who is a currency strategist at Australian & New Zealand Banking Group in Sydney, said that there are a number of issues with the euro zone economy and it is clear that there is an acute contraction. He predicted that the 17-nation currency will continue to weaken in the coming week. The euro has increased against the dollar by 0.1 percent on the week, but has declined by 0.6 percent against the yen. The US dollar has had a tough week after a series of disappointing data and sentiments. The greenback has dropped by 0.7 percent against the yen on the week.
Economists are expecting an Index of household sentiments to remain unchanged this month from the month of June at negative 19.8. This figure is expected to be confirmed on Monday July 23, when it is scheduled to be released by the European Commission. Further, a gauge of manufacturing is expected to show a figure of 45.3 which is below the level of 50, indicating contraction in the sector. This report by Markit Economics is scheduled to be released on July 24.
These bearish sentiments on the euro zone data has sent the euro down by 0.2 percent against the US dollar to trade at $1.2260. The 17-nation currency has remained unchanged at 96.43 yen per euro.
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