The Euro to USD exchange rate softened on Monday as weaker than expected manufacturing PMI data out of Germany continued to weigh on the single currency.
Data released out of the US also came in weaker than forecast but investors shrugged it off due to it showing that the US economy is continuing to improve.
The US data showed that manufacturing in the country fell from last month’s four-year high. The PMI came in at 55.5, weaker than the previous month’s figure of 57.1. Readings above 50 indicate expansion, a figure means contraction. Investors paid the figures little attention.
“The manufacturing PMI adds to evidence that the sector has shrugged off the weather-related weakness seen earlier the year, with strong demand encouraging firms to expand and hire new staff at a robust pace.
The buoyant growth in March rounds off the best quarter for three years, indicating that the sector should provide a robust contribution to GDP in the first quarter. Growth was not as strong as February, but that’s in many respects only to be expected after last month’s numbers had been boosted by the rebound from January’s severe weather,” said Markit’s Chief Economist Chris Williamson.
The ‘Greenback’ also continues to find support from expectations that the Federal Reserve could raise interest rates sooner than previously anticipated.
Germany’s PMI showed a decline in private sector activity overshadowing a report which showed that activity in France hit its highest level in 33 months. The pace of the recovery in the euro zone’s private sector slowed slightly in March, but remained close to the previous month’s two-and-a-half year highs.
Trade was relatively muted on Monday due to the release of a report which showed that Chinese manufacturing declined yet again in March, spurring concerns that the world’s second largest economy is slowing.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,
,US Dollar,1.3774 ,
Euro,,British Pound,0.8360 ,
Euro,,Australian Dollar,1.5111 ,
Euro,,Canadian Dollar,1.5443 ,
[/table]
