Pure FX Logo arrow Reviews On Feefo Pure FX Logo Exemplary Service In-Depth Knowledge We're Jargon Free Same-Day Transfers Better Exchange Rates No Commission 0 Personal Transfers Business Transfers FCA Authorized Personal Service Trusted Brokers Get A Quote Register With Us Make A Transfer Seller Transfers Contract Definitions Read Our Top Tips What Influences Exchange Rates Glossary Frequently Asked Questions Contact Us

Euro Hits 1-Week High Versus US Dollar, as ECB Hints at Higher Rates

Market CommentaryEuro Hits 1-Week High Versus US Dollar, as ECB Hints at Higher Rates
Euro Hits 1-Week High Versus US Dollar, as ECB Hints at Higher Rates
Image credit: Dani Simmonds.

Welcome to Pure FX's latest update of the euro to US dollar interbank exchange rate.

This tells you when it's a fantastic time to exchange euros to US dollars, for your money transfer!

The common currency flies versus the greenback! The euro to US dollar interbank exchange rate has hit 1.1708 today, its strongest in 1 week, or since June 26th.

The euro has risen, because financial website Bloomberg has cited an anonymous European Central Bank (ECB) policymaker, who's reportedly uneasy that financial markets aren't forecasting an interest rate hike before December 2019.

According to the ECB executive, the Eurozone's central bank is more likely to hike interest rates above their current 0.0% in September or October 2019, thereby lifting the euro.

Following the publication of Bloomberg's article, financial markets have lifted the probability that the ECB will lift interest rates in September next year by +10%, to 80%, so boosting the euro.

This has strengthened the euro, first because when the ECB lifts interest rates, this suggests that the Eurozone economy is now strong enough to withstand higher borrowing costs.

This has also raised up the common currency, because when the Eurozone's central bank hikes borrowing costs, this makes investing in the currency bloc more profitable for international money managers!

Euro Jumps, as Eurozone Business Activity Accelerates

What's more, the euro has also reached this 1-week high against the US dollar, because Eurozone business activity accelerated in June, according to a closely-watched survey yesterday.

The euro has flown higher, because IHS Markit's composite PMI, measuring business activity in Eurozone services, manufacturing and construction, hit 54.9 in June, well above May's 54.1.

In particular, business activity in both Germany and France, the Eurozone's 2 largest economies, picked up last month. This signals solid GDP growth of +0.5% between April and June, thus bolstering the euro.

This has helped the euro, first because these Eurozone business activity figures point to faster economic growth in Q2, suggesting that a marked slowdown earlier in 2018 was just temporary.

This has also lifted up the common currency, because when Eurozone businesses grow faster, this encourages the European Central Bank to lift interest rates above their current 0.0% sooner.

With all this in mind, the euro to US dollar interbank exchange rate has reached this 1-week high, and may continue to climb, looking ahead!

Get A Free Euro to US Dollar Exchange Rate Quote

Get a free euro to US dollar exchange rate quote to get our best exchange rate, and find out how much you could save with Pure FX.

You’ll get an outstanding euro to US dollar exchange rate for your money transfer!

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 peter.lavelle@purefx.co.uk.

Get A Free Quote
I’d like to exchange...
Because I want to...
And I would like it...
Pure FX awarded Feefo Gold Trusted Merchant 2016PureFX's Product Rating on Feefo

What Our Clients Say

Read all the reviews at Feefo.com

Why Us

FCA Authorised

Directly authorised by the UK's Financial Conduct Authority, so your money is highly secure.

No Hidden Fees & 0% Commission

So you get our biggest possible saving when you exchange currencies.

Same Day Transfers

Receive your money in your destination bank account the same day you send it, for most mainstream currencies.

Outstanding Exchange Rates

Get bigger savings, with Pure FX's best exchange rate guaranteed!

Dedicated Personal Service

To guide you through the transfer process, and keep you up-to-date with the changing exchange rates.

Trusted Foreign Exchange Broker

Since we were established in 2006, we've transferred money for thousands of satisfied clients.

How It Works

  • Quote

    Use our form to get a free exchange rate quote, and find out how much you could save with Pure FX.
  • Register

    We'll be in touch to give you your exchange rate quote, ask you any further questions and tell you how the transfer process works.
  • Transfer

    From buying a property abroad, to making business transfers, or online selling - we have you covered.