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Categorized | Euro Exchange Rates News

Euro Gains In Early Session After Sharp Friday Decline

The Euro gained a bit of ground on the US dollar in early trading, after a hefty fall on Friday when encouraging US data was released, with better than expected figures on retail sales and consumer sentiment in the US.

The Euro stood at 1.1317 dollars at 9AM, versus 1.1309 dollars on Friday close.

The Euro also gained some ground against the Japanese Yen to 123.22 yen versus 122.85 on Friday.

The US Dollar hit a 2 week high on Friday after the economic data hit the markets. This resulted in a strong decline in the majors of EURUSD and GBPUSD.

These statistics have again fueled speculation about a new rate hike by the US Federal Reserve (Fed), although the outlook remains uncertain on whether that will actually happen in June. Markets remain cautious and not take into account the low probability of a rise in June.

In December, the Fed raised its interest rate for the first time in nearly 10 years, which in turn made the dollar more profitable and therefore more attractive to investors, but since then, the US economy has shown signs of unease.

On Friday Goldman Sachs published similar reports as Deutsche Bank in revising their 12-month euro/dollar forecasts. The respected broker has now forecast the euro would be trading at $1.05 in a years time, up from a prior forecast of 95 cents.

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