STORY LINK Euro to US Dollar Exchange Rate Firms as US Data Disappoints Yet Again
‘The weaker rate of expansion is a big disappointment, given widespread expectations that the ECB’s quantitative easing will have boosted the fledgling recovery seen at the start of the year. However, it’s too easy to draw firm conclusions about whether growth is faltering again and the effectiveness of policy. Although the PMI has pulled back from March’s recent high, the index remains above the average seen in the first quarter and is indicative of the Eurozone economy growing at a reasonably robust quarterly rate of 0.4% at the start of the second quarter,’ said Chris Williamson, chief economist at Markit economics.
Unemployment in Spain was also shown to have increased to 23.7%. Economists had been forecasting for a dip to 23.1%.
As the session progressed, the US Dollar weakened as data showed that the number of Americans filing for unemployment benefits ticked unexpectedly higher last week and as Markit’s Flash Manufacturing PMI came in below expectations. The biggest drag on the ‘Greenback’ however was a report, which showed that the number of new home sales collapsed in March.
According to the Washington based Commerce Department, new home sales fell by 11.4% last month to a seasonally adjusted annual rate of 481,000. The figure marked a sharp drop from the preceding month’s seven-year high of 543,000. March’s decline was the biggest drop recorded since July 203.
The Euro also regained ground against the Pound Sterling after data showed that UK retail sales fell by -0.5% last month. The fall disappointed expectations for a rise of 0.4%. On an annual basis retail sales rose by 4.2% in March, below forecasts for a gain of 5.4%.
International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.
TAGS: American Dollar Forecasts Daily Currency Updates Euro Forecasts
Comments are currrently disabled