The euro strengthened against the US dollar on Tuesday which seemed to be a result of a better than expected Eurozone unemployment rate, which came in at 11.7% when it was forecast at 11.8%. The single currency has, as yet, not been undermined by poor inflation date. A Consumer Price Index (CPI) reading from the Eurozone came out at 0.5% for May, a drop from April’s 0.7%. However, weaker-than-expected German inflation rates on Monday had prepared investors for the possibility in a further fall in Eurozone inflation rates, and the drop was accordingly priced into the market.
Today we are expecting the services Purchasing Managers’ Index (PMI) out of Europe to match last month’s reading of 53.5. All eyes will then be on tomorrows European Central Bank (ECB) meeting which could see large shifts for the euro. Which way is the great unknown.
If you are looking to buy or sell euros I suggest contacting your trader now for live rates, news and currency-purchasing strategies.