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!
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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.