Euro hits one week high on upbeat data, dollar retreats

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Euro hits one week high on upbeat data, dollar retreats

The Euro, contributing to a lion-share of 57.2 percent of the American dollar index (DXY) measured against a basket of six major currencies on an average, climbed to a one-week high on Tuesday, the 30th of April, after a flurry of first quarterly eurozone economic growth figures had insanely beaten analysts’ expectations, easing some concerns on the bloc’s common currency.

While euro had added 0.28 percent to $1.1213 on Tuesday’s (April 30th) market closure, gaining for third straight days in a row, the Great Britain Pound was heaved much higher after reports had revealed that the talks between PM May’s Labor Party and Conservatives had been going well over submitting a rational Brexit proposal on UK House of Commons.

At the day’s closure, the British currency added 0.81 percent or 105pips to $1.3034, extending its gain for three straight days, identical to Euro. Meanwhile, the US dollar index rounded off the day down by 0.38 percent to 97.48, after breaching a 23-month high at 98.33 on last Friday (April the 26th) ahead of a Fed interest rate decision due to be released on Wednesday (May 1st), GMT 18.00.

Adding that a strong Dollar buy-position had been over-exaggerative, given a bunch of tame inflation indicators released on Monday (April 29th) which would likely to prod Fed to slash interest rate for the first time this year amid frequent calls of US President Donald Trump for a lower interest rate, a global head of G10 FX research at Standard Chartered Bank in New York, Steven Englander said, “We feel the dollar-buying move was a bit overdone”