US Dollar to Euro (USD/EUR) Exchange Rate Forecast to Make Largest Weekly Decline in Six Months
The US Dollar is expected to make its biggest weekly decline in six months against the Euro as the currency remains under pressure from the release of the Federal Reserve’s policy meeting minutes for March.
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The minutes disappointed the markets as it dampened speculation that the US policy makers could increase interest rates sooner than thought.
“The Dollar is being sold. Lower US inflation rates are leading to the view that the economy is not doing well,” said a trader at the Los Angeles based Union Bank.
Against the British Pound, the ‘Greenback’ is trading close to two-month lows as economists await the release of the latest US PPI and consumer sentiment data.
Both sets of data are predicted to show improvement which could offer the currency some support.
The Dollar’s weakness is likely to be short-lived as economists predict upcoming economic data will begin to show a strengthening of the world’s largest economy as it continues to recover from the impacts of harsh winter weather.
Yesterday the currency found support from a report which showed that the number of US citizens claiming unemployment benefit last week fell by 30,000 to a seasonally adjusted level of 300,000.
The overall number of continuing jobless claims dropped to 2.77 million, the lowest figure recorded since January 2008.