The Euro to USD Exchange rate remained at a three-week high on Friday as subdued trade caused little movement on the market.
The Euro continued to find mild support from Greece’s return to the financial markets on Thursday. The austerity hit country managed to raise €3 billion in its first bond auction since 2010 when Athens sought its first financial bailout.
The US Dollar found support after positive data bolstered demand for the currency. In its preliminary report the University of Michigan said that its consumer sentiment index for April rose to 82.6. The figure was higher than the previous month’s figure of 80 and was better than economist forecasts for a figure of 81.0. The rise was the biggest rise recorded in nine months.
“Economic news reaching consumers grew more favourable in early April. Net reports on changes in employment were more favourable, and negative mentions about current economic policies eased,” said survey director Richard Curtin.
Also lending support was the latest producer price inflation report. Prices rose by 0.5% in March countering the -0.1% fall recorded in February. Economists had been expecting a 0.1% gain. Separately consumer price inflation advanced by 0.6% last month beating forecasts for an increase of 0.2%.
If next week’s Eurozone inflation data comes in below expectations we can expect the Euro to weaken against the US Dollar and other peers as concerns over deflation in the Eurozone will be raised.
Data releases due next week –
Monday April 14th – Eurozone Industrial Production
US Retail sales
Tuesday April 15th – German economic sentiment index
US inflation data
Wednesday April 16th – Euro inflation data
US industrial production
Thursday April 17th – German PPI
US initial jobless claims data
Current Euro Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,
,US Dollar,1.3889 ,
Euro,,British Pound,0.8299 ,
Euro,,Australian Dollar,1.4760 ,
Euro,,Canadian Dollar,1.5218 ,
[/table]
