The Euro has strengthened against the US Dollar, adding to the gains it achieved last week, after economic data showed that manufacturing across the Eurozone contracted at a slower pace than expected in May.
According to Markit’s Eurozone Manufacturing Purchasing Managers Index (PMI) output rose to 48.3 in May, up from Aprils reading of 46.7. The level is the highest seen since February 2012 and is the first time the decline has slowed in four months. The data has added to a sense of optimism that the Eurozone’s struggling economy could be about to turn a corner.
“The surprise in the Euro-region data is lending support to the Euro,” said Kasper Kirkegaard, a senior currency strategist at Danske Bank in Copenhagen. “At the moment it only takes little news to send the Euro higher against the Dollar because the market is very long Dollars.” A long position is a bet that an asset will rise in price.
The single currency also found support after European Central Bank President Mario Draghi said that the Euro zone economy is on track to make a recovery later in the year, the comments calmed investor nerves, which benefitted the Euro.
“Although the Euro areas manufacturing continued to contract in May, it is reassuring to see the rate of decline ease to such a marked extent,” said Chris Williamson, chief economist at Markit.”The surveys still suggest that GDP is likely to have fallen 0.2 percent in the second quarter, extending the region’s recession into a seventh successive quarter.”
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3024
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8527
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3510
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6323
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7678
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1727
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7401
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6126
(Correct as of 11:05am GMT)
