Asian session: The euro dropped
02:30 China HSBC Manufacturing PMI (May) 51.1
The euro touched a record low against the Swiss franc as concern over Europe’s sovereign debt crisis deepened, reducing the appeal of the region’s assets.
The 17-nation currency reached the lowest in a week against the dollar after Spain’s Socialist party suffered its worst electoral defeat in more than 30 years and Standard & Poor’s on May 20 said it may lower Italy’s credit rating.
The Dollar Index climbed to its highest in almost seven weeks as declines in Asian stocks spurred demand for safer assets.
Gains in the U.S. currency may be limited before reports this week that may show orders for durable goods declined and consumer spending cooled, providing more evidence that the world’s largest economy is losing momentum.
EUR/USD: the pair decreased in around $1.4060.
GBP/USD: the pair decreased in around $1.6200.
USD/JPY: the pair become stronger in around Y82.00.
Monday morning sees the release of the flas manufacturing and services PMI releases for the main European states, including Germany, which is expected to see the data comes in at 61.0 and 57.0 and France at 57.0 and 62.1 respectively. The data leads up to the EMU data itself, which is expected to come in at 57.5 and 56.5 with the composite number coming in at 57.3.