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Jul 24, 2018

EU FX: Euro little changed, bitcoin above $8,000 I CNBC.

cnbc.com

Euro little changed, bitcoin above $8,000

CNBC


Currency exchange yuan dollars Tyrone Siu | Reuters
The euro seesawed on Tuesday after surveys showed euro zone business growth remained robust yet below forecasts, and fears of a trade war with the United States kept the single currency trapped in narrow ranges.
IHS Markit's Euro Zone Composite Flash Purchasing Managers' Index (PMI), seen as an indicator of economic health, showed slower growth than expected.
The PMI data was "certainly not strong enough to bring forward the timeline for an eventual rate hike for the (European Central Bank), but also probably not weak enough to push that timeline out any further," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.
With the U.S. central bank likely to raise interest rates at least twice more this year and the European Central Bank unlikely to raise interest rates until the second half of 2019, traders remained cautious about the outlook of the euro.
The euro briefly traded higher after the PMI data release, but gave back those gains to trade around the flatline.
The U.S. dollar was 0.03 percent lower against the euro and five other major currencies to 94.64 as comments last week from U.S. President Donald Trump that criticized the currency's strength continued to weigh on sentiment.
The greenback fell 0.14 percent against the yen to 111.17 yen.
Risk appetite was mostly firm after Beijing promised to pursue a more "vigorous" fiscal policy, stepping up efforts to support growth. Both the euro and sterling edged higher against the Swiss franc as investors bet that further policy easing from China would send investors into higher-yielding assets.
Bitcoin, the world's best-known cryptocurrency, gained 6 percent to surpass $8,000 on Tuesday on the Bitstamp exchange , its highest since May 22. Ethereum, the second-largest digital currency, gained 5.54 percent to $474.22 on Bitstamp.
Reports about the impending approval in the United States of a cryptocurrency exchange-traded fund have helped bolster demand in recent days. Bitcoin has lost more than a third of its value in 2018 as institutional and retail interest declined. It has gained in eight of the past 10 sessions.