The Euro to US Dollar (EUR/USD) exchange rate tumbled by around -0.60% on Friday afternoon.
The US Dollar advance is thanks to futures traders speculating that the Federal Reserve will be the first of the major central banks to normalise monetary policy. The shared currency, meanwhile, strengthened versus nearly all of its major peers after both German and Eurozone manufacturing improved.
The Euro to US Dollar exchange rate is currently trending in the region of 1.2014.
Euro (EUR) Exchange Rate Trending Higher on Manufacturing Data
Although manufacturing data from several European countries printed disappointingly on Friday, improvement in both German and Eurozone manufacturing has seen the shared currency appreciate against the majority of its most traded currency competitors. The German Manufacturing PMI met with the median market forecast of a rise from 49.5 to 51.2, and the Eurozone Manufacturing PMI increased from 50.1 to 50.6.
Chris Williamson, Chief Economist at Markit, stated; ‘We should hopefully see growth pick up in coming months. Lower costs, linked to falling oil prices, are helping manufacturers to reduce their selling prices, and the drop in fuel prices should also boost consumer spending.’
The Euro to US Dollar exchange rate has fallen to a low today of 1.2032.
US Dollar (USD) Exchange Rate Advances despite Poor manufacturing Data
The US Dollar advanced across the board on Friday after futures traders speculate towards a Federal Reserve rate revision in the near-future.
‘The Dollar is continuing to derive support from the relative outperformance of the U.S. economy and building investor expectations of widening monetary policy divergence between the Fed and other major central banks,’ Lee Hardman, a foreign-exchange strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London, wrote in a client note today.
Euro to US Dollar (EUR/USD) Exchange Rate Forecast to Soften on US Data
Should the economic data pertaining to the United States print positively, the US Dollar is likely to surge against all 16 of its major competitors. If manufacturing improves above expectations it will add pressure on the Fed to raise rates.
The Euro to US Dollar exchange rate reached a high today of 1.2089.
