Euro fluctuated in a narrow upward bias during US session to see its lowest bounce since June 29, while its second consecutive weekly loss against the US dollar followed economic developments and data that followed on Friday The Eurozone and the US economy are the largest economy in the world.
At 02:43 pm GMT, the EUR USD rose 0.04% to 1.1590, compared to the opening at 1.1585 after the pair reached a high of 1.1611 and a five-week low of 1.1560.
France’s second-largest economy followed the reading of the government’s general budget, which showed the deficit widened to 58.9 billion euros from 55.1 billion euros last May, ahead of Spain’s fourth-largest economy PMI. Which showed a contraction to 52.6 versus 55.4 in June, worse than expected at 54.4.
We also followed the Italian third-largest economy of the euro zone reading PMI service, which showed the contraction of the breadth to 54.0 compared to 54.3 in June, exceeding the expectations at 53.6, and this was before we see France’s final reading of the same index and Showed a contraction of the widening to 54.9 compared to the previous July reading and expectations at 55.3 versus 55.9 in June.
To the end of the reading of the index of PMI services for Germany, the largest economies of the euro area and the economies of the euro area as a whole, which showed the contraction of the expansion in Germany to 54.1 compared to the previous reading last month and expectations of 54.4 compared to 54.5 in June, The euro as a whole rose to 54.2 from the previous reading and forecasts at 54.4 versus 55.2 in June.
This came in line with the release of Italy’s Industrial Production Index, which showed a slowdown in growth to 0.5% from 0.8% in May, beating expectations of 0.4% and before the release of the Retail Sales for the whole Eurozone which showed a 0.3% June, below expectations of 0.4%, in conjunction with the same indicator of Italy, which showed a decline of 0.2% against the rise of 1.1%, worse than expectations of a rise of 0.1%.
On the other hand, we followed the US economy to reveal the labor market data for July, which showed the unemployment rate fell to 3.9% in line with expectations compared to 4.0% in the previous reading for the month of June, as indicated by the average income index per hour The pace of growth accelerated to 0.3%, also in line with expectations versus 0.1% in June.
In the same context, we also followed the release of the Non-Farm Sector Change Index, which showed a slowdown in job creation to 157K compared with 248K in June, worse than expected at 191K. The trade balance index widened to $ 46.3 billion from $ 43.2 billion in May, beating expectations that the deficit widened to $ 46.5 billion.
The index of the Service Supply Index, which showed a contraction of 55.7 vs. 59.1 in June, was worse than expected at 58.6. We would like to point out that the Service Supply Index, which is a composite indicator of the conditions of utilities and retail, housing, care Health and finance is important because the US service sector accounts for more than two-thirds of US GDP.