Welcome to Pure FX's latest update of the euro to US dollar interbank exchange rate!
The common currency climbs versus the greenback! The euro to US dollar interbank exchange rate has hit 1.1443 today, its highest in 2 weeks, or since January 15th.
By contrast, back on last Thursday January 24th, the euro was at just 1.1295 versus the buck, so it's since risen by +1.31%, or over +1.5 cents.
To put this into context for you, 250,000€ in US dollars at today's interbank exchange rate would be worth $286,075, or +$3,700 more than on January 24th!
So if you're a Eurozone business owner importing American goods, this may help you for your money transfer.
Euro Rises, as Eurozone Forecast to Avoid Recession
The euro to US dollar interbank exchange rate has reached this 2-week high, because it's forecast that the Eurozone economy will avoid entering recession.
In recent weeks, the currency bloc's economy has slowed, dragged down by lower Chinese demand, Brexit uncertainty, and tougher emission standards for vehicle manufacturing.
That said, according to Sentix's newest 6-months ahead economy expectations survey, Eurozone growth will remain above the 2011-12 debt crisis.
This tells us that, though Eurozone growth will slow, it may avoid recession, thereby bolstering the euro!
Euro Strengthens, as Eurozone Lending Stays Steady
What's more, the euro has also jumped versus the US dollar, because even though the Eurozone's economy has slowed, Eurozone banks continue to lend steadily to households and businesses.
Private loans in the common currency bloc rose by +3.3% in December compared to a year ago, said official statistics body Eurostat on Monday, close to the post-financial crisis highs.
This suggests that the Eurozone's banks remain optimistic about the bloc's economic growth outlook, and will support GDP expansion, even though the Eurozone has slowed. So this has lifted the euro!
US Dollar Falls, as Fed Selling Bonds Slower
Moreover, the euro has also risen against the buck, because it's emerged that America's central bank, the Federal Reserve, is selling bonds slower than previously thought.
In the years following the financial crisis, the Fed bought billions in US bonds, to make it cheaper for households and businesses to borrow money, and stimulate the economy.
More recently though, America's economy has recovered, so the Fed has been selling its bonds. Now though, it's emerged that the Fed has been selling its bonds slower than believed.
This suggests that the Fed thinks that America's economy still needs monetary support to grow, thus weighing down the US dollar!
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Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email email@example.com.