In Tuesday’s currency markets the Euro in up slightly versus the U.S. dollar, logging a 0.19% gain throughout the European morning session to trade at 1.3763 heading into lunch.
The gain comes alongside mixed data out of the Eurozone. The Gobierno de España revealed a better than expected Spanish unemployment change figure, with unemployment in the nation falling 1.9K compared to January’s rise of 113.1K and versus a forecast rise of 74.2K.
In other European news, Eurostat revealed a worse than expected producer price index (PPI) MoM figure at -0.3%, compared to a previous figure of 2.0% and versus a forecast -0.1%. The YoY equivalent also fell short of expectations, reported as -1.4% compared to a previous 0.8% and versus a forecast -1.3%.
Elsewhere, after a small, session-open decline, the Sterling is up versus the U.S. Dollar despite worse than expected construction data from the U.K. The Chartered Institute of Purchasing and Supply reported a diffusion index level of 62.6, down from both the previous 64.6 and the forecast 63.0, highlighting a contraction in construction activity throughout February.
A quiet day for market moving U.S. data, the driving factor behind Tuesday’s U.S. Dollar value will likely be the ongoing situation in Ukraine. A rumoured ultimatum created a risk-off market heading into Monday night, but Russia denied the alleged rumour and took no action at the reported 03:00 GMT deadline.
The lack of action will ease sentiment somewhat, but it will likely be some time before market sentiment shifts completely. Russia still has troops stationed just outside a number of Ukraine’s military bases and throughout the Crimean peninsula.
Any events that hint at escalation in the region will likely strengthen the Dollar against its major counterparts, so don’t be surprised if the GBPUSD and EURUSD gains diminish throughout the European afternoon / U.S morning session.
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