The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
Euro drops below $1.36 mark
The euro is under pressure versus the US dollar as manufacturing in the eurozone declines in May.
The euro is trading at $1.3598, down 0.27% on the day as the region posts a decline in manufacturing output in May, with the weaker-than-expected figures from Germany particularly worrying. As I previously mentioned, the main focus of the week will be the European Central Bank meeting on Thursday, and the poor manufacturing figures from Germany and the eurozone would suggest Mario Draghi needs to act sooner rather than later.
The US will announce the latest manufacturing purchasing managers index report at 2.45pm (London time), and the expectation is for a reading of 56.2. The euro will find it difficult to retake the $1.3640 level, and a strong figure from the US could put the euro on a path towards $1.35.