Euro Trades at Lowest in 12 Months Amidst Softer PMI
The European single currency, the Euro, trades at 1.14 per dollar, its lowest level since June 2025. Over the past 4 weeks, the Euro to US Dollar has lost 2.15%, and in the last 12 months, it has decreased 1.89%.
The euro has been sold to a new low for the year, slightly above $1.1400. The previous low for the year was set in mid-March near $1.1410.
A break of the $1.1390, last August’s low, could signal a test on the $1.1340 area. The intraday momentum indicators are stretched, but the previous support in the $1.1420-25 area may now act as resistance.
The preliminary June eurozone manufacturing PMI was softer, at 51.3, down from 51.6. The contraction in services slowed (48.9 vs. 47.7) as did the composite.
But, at 49.5 (from 48.8 in April), it was the third consecutive month below the 50 boom/bust level. It did not fall below 50 at all last year.
Both the German and French composite indices remained below 50 and slowed sequentially, adding pressure on the European single currency.
The yen is the only G10 currency holding its own today, as Japan’s finance minister has played up talks with US Treasury Secretary Bessent, who has been quiet about the exchange rate amid the BOJ’s interventions in April and May.
With the BOJ rate hike delivered this month (but not in April), we have suggested Japanese efforts may receive more support from the US – as was the case in January. Wall Street Dips, European Stocks Rally as U.S Fed Keeps Rates
