The Euro is trading at its best level in seven-weeks against the US Dollar as stronger-than-expected PMI data out of the Eurozone combined with disappointing trade data out of the USA.
The ‘Greenback’ weakened after data released by the Washington based Commerce department showed that the USA’s trade deficit narrowed less-than-forecast.
Official data showed that the world’s largest economy’s trade deficit narrowed to $40.38 billion in March from the $41.87 billion recorded in February. Despite the narrowing the data disappointed the markets as economists had been expecting a figure of $40.30 billion.
As a result of the data the US Dollar fell to its lowest-level in five years against the Pound and also fell against the Australian, New Zealand and Canadian Dollars.
The Euro was finding support from data released earlier in the session which showed that the number of people unemployed in Spain fell far more-than-expected in April and as Eurozone retail sales rose more-than-forecast in March.
Data out of Spain showed that the number of Spaniards out of work tumbled by 111,600 in April, smashing expectations for a decline of 49,100. The figure adds to the previous month’s figure of a fall of 16,600.
A separate report showed that Eurozone retail sales increased by 0.3% in March beating economist expectations for a fall of -0.2%.
Also offering support to the single currency was data which showed that the Eurozone private sector made a positive start to the second quarter of the year. Upturns in production were seen in Spain, Ireland, Germany and Italy suggesting that the region’s economic recovery is broadening to nations on the Eurozone periphery.
The Euro could see further movement on Wednesday if factory order data out of Germany comes in strongly and the data out of struggling France sees an improvement.
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,1.3943 ,
Euro,,Australian Dollar,1.4914 ,
Euro,,Canadian Dollar,1.5215 ,
US Dollar,,Euro,0.7173 ,
Pound Sterling,,Euro,1.2185 ,