Euro price falls after strong US data – francs are also down

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The euro’s price fell against the US dollar on Friday, as did the Swiss franc. Better than expected economic data from the USA pushed the euro’s course in the afternoon business down to a daily low of 1.1617 US dollars. In comparison, the euro was recently traded slightly higher in New York at $ 1.1663. The European Central Bank (ECB) had set the reference rate at 1.1669 (Thursday: 1.1699) dollars.

For the franc, the dollar climbed above the threshold of 0.99 at times. Currently he is still around at 0.9889 francs. The euro has meanwhile set above 1.15 and costs 1.1534 francs.

In May, the number of employees in the United States had surged surprisingly high. The unemployment rate fell to its lowest level since the beginning of the millennium. “Partylaune on the job market,” commented expert Christiane von Berg of the BayernLB the data.

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EU wants to respond to US punitive tariffs – worried about escalation

us euro trade warThe US-imposed punitive tariffs on steel and aluminum put the EU in the grip of pressure and raise concerns about a trade war with other products. There are fears that the government of US President Donald Trump, following a retaliatory move from Brussels, will impose higher taxes on additional sectors such as the export-oriented German auto industry. Observers urge prudence: As long as it is all about steel, Europe is comparatively little affected.

US tariffs on imports of steel (25 percent) and aluminum (10 percent) from the EU came into force on Friday morning. Mexico and Canada – the largest steel supplier in the USA – are also among them. All three trading partners of Washington consider this unjustified. The Federal Government assesses the new tariffs as unlawful.

The EU filed suit on Friday against US special tariffs at the World Trade Organization (WTO). “The European Union must clearly represent its interests,” said Foreign Affairs Commissioner Federica Mogherini in Brussels. The request for consultations in the context of a dispute settlement procedure was received, it was said at the WTO in Geneva. In addition, the EU wants to impose additional tariffs on a number of US imports.

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Italian stocks lose tailwind after Populist out

italy populistThe initial tailwind for the Italian stock market through the surprise ending for the Euro-critical five-star movement and the rightwing Lega party was quickly lost on Monday morning.

After initial price gains of 2% on the FTSE MIB, the Italian leading index was only just over 0.09% higher at 22 417.98 points.

In view of the rashes in the market, the two populist forces were referred to a failure of the formation of a government for the time being. Their joint candidate for the Prime Minister, Giuseppe Conte, had returned on Sunday after just four days, the government contract to President Sergio Mattarella. The reason for this was mainly the dispute over the planned appointment of a designated Euro and Germany critic to the Minister of Finance.

Initially, relief started to spread on the market after the conflict potential with the EU resulting from the coalition plans on the capital markets had recently caused uncertainty. However, investors’ euphoria quickly faded as the perception that the government-building process remains a potential source of anxiety in the context of expected new elections persisted.

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Why the euro hardly moves to the franc

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The euro rose on Monday after comments by French central bank chief Francois Villeroy de Galhau and has gone towards 1.20 US dollars.

In the morning trade, the common currency cost up to $ 1,1990. At noon the price is $ 1.1982.

Compared with the Swiss franc, the euro shows little movement and at 1.1962 francs it is quoted at about the same level as in the morning. The dollar / franc exchange rate is again below parity at 0.9882 francs, after having been a little above in the course of the day so far.

The euro reacted with gains after France’s central bank chief Villeroy de Galhau commented on the ECB’s monetary policy stance. At an event in Paris, he said that a first rate hike in the euro area would probably take place a few quarters, but not years, after the end of ECB asset purchases. The latter is currently expected towards the end of the year.

Accordingly, the ECB would probably start raising interest rates over the coming year, which also reflects current market expectations. The euro nevertheless reacted with moderate gains. In addition, Villeroy de Galhau made it clear that the ECB would not adapt its target tightening course to individual countries with budgetary problems.

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