Euro to US Dollar (EUR/USD) Exchange Rate climbs to two-week high
Frankfurt-Germany (Feb 11) The single currency advanced for a fifth consecutive day against the US Dollar on Tuesday as the US currency came under pressure ahead of the release of data which is forecast to show a slowing of the world’s largest economy and a testimonial by new Federal Reserve Chairman Janet Yellen.
Ms. Yellen will testify on the Fed’s monetary policy and economic outlook for the USA to the Senate Banking Committee later in the session. The new Fed chairman is expected to reiterate that the Central Bank will continue to push ahead with reducing its monthly bond buying programme as long as the US economic recovery remains on the right track. She is also expected to repeat the bank’s pledge to keep interest rates at low levels until the recovery has firmly taken hold.
The Euro managed to make gains against the US currency after the ‘Greenback’ came under pressure from mounting concerns over the US recovery. The last two months of US jobs figures have been the weakest in three years, causing concerns over a slowdown of the recovery.
With a lack of economic data out of the Eurozone today the single currency is being heavily influence by international factors.
Wednesday sees the release of Eurozone industrial production data but most of the market’s attention will be focused on a speech due to be held by European Central Bank President Mario Draghi. Economists will be keen to hear what he has to say on the health of the Eurozone economy.