Euro to US Dollar (EUR/USD) Exchange Rate Advances Close to Eight-Week High
The Euro climbed to its highest-level in eight-weeks against the US Dollar on Tuesday as upbeat Eurozone data supported the single currency and weaker-than-forecast US trade data weighed upon the ‘Greenback’.
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The Euro found support early on in the session from a report released by Markit economics which showed that the Eurozone’s private sector got off to a strong start in the second quarter of the year.
The Eurozone’s final composite PMI increased to 54 in April, beating the previous month’s figure of 53.1. The services PMI meanwhile increased to 53.1 from 52.2.
A separate report showed that retail sales in the Eurozone increased more than forecast in March. Sales rose by 0.3%, beating expectations for a decline of -0.2%.
Adding further support to the single currency was positive data out of Spain which showed that the number of Spaniards out of work fell by 111,600 in April.
The fall was far better than economist forecasts for a figure of 49,100. Another report out of Spain showed that the nation’s services PMI increased to a six-year high of 56.5 last month.
Other Eurozone periphery nations such as Ireland and Italy also saw increases suggesting that the region’s economic recovery is beginning to broaden.
The US Dollar meanwhile fell after trade data came in below expectations.
The world’s largest economy posts a trade deficit of $40.38 billion in March. A narrowing compared to the previous months figure of $41.87 billion but was below expectations for a decrease to $40.30 billion.
Against the Pound the US Dollar fell to its lowest-level in five-years as positive UK service PMI data increased speculation that the Bank of England will increase interest rates sooner than other major Central Banks.
Currently the Euro is trading against the British Pound in the region of 0.8201 and is trading against the US Dollar in the region of 1.3933.