Euro Weakens as EUR/USD Moves Lower

Euro weakness saw GBP/EUR hit 1.13. Dollar strength has seen further moves lower in EUR/USD today. The calendar remains light.

Previous Day's Market Highlights

Euro weakness yesterday saw GBP/EUR regain 1.13 for the first time this year, its highest levels since 19 December. Sterling saw some positive sentiment as the government announced a cabinet reshuffle. EUR/USD continued to pull back from last week’s highs above 1.20.
 
The economic calendar was light. Of note, Eurozone Consumer Confidence came in unchanged at 0.5, as expected, while Retail Sales were higher than forecast in November.

Today's Market Highlights

The dollar has seen a bid tone this morning, pushing GBP/USD and EUR/USD lower towards 1.35 and 1.19, respectively. US data is mostly low-level, but Fed member Kashkari will speak this afternoon. Kashkari tends to lean towards the dovish end of the spectrum and has expressed concerns over raising rates too quickly whilst inflation is low.     
 
This morning, a further dip in the Eurozone’s Unemployment Rate could strengthen the euro. Tomorrow is the main data day for the UK, which releases Manufacturing and Industrial Production data.

Today's Economic Calendar

Time Currency Release Consensus Previous
10:00 EUR Unemployment Rate (Nov) 8.7% 8.8%
13:15 CAD Housing Starts s.a. YoY (Dec) 212.5K 252.2K
15:00 USD JOLTS Job Openings (Nov) 6.038M 5.996M
15:00 USD Fed's Kashkari Speaks