In early Asian sessions yesterday, the Euro rose against a weaker US Dollar and edged above $1.1000 ahead of the release of Eurozone gross domestic product data later in the day.
With concerns about political risks in the Eurozone having receded after centrist Emmanuel Macron was elected France’s president over far-right nationalist Marine Le Pen, focus is shifting back towards the outlook for monetary policy.
Investors are now focusing on when and how the European Central Bank could scale back its quantitative easing given the recent strength in the Eurozone economy.
Meanwhile, the US Dollar traded near a one-week low against its major peers, having come under pressure after the release of soft US manufacturing report showing a drop to -1.0 from the prior month reading of 5.2 and versus expectations of 7.5.
Analysts cautioned that the downturn could be an indication of possible deterioration in the manufacturing sector.
On Tuesday as well, the Australian Dollar held steady after the minutes of the central’s bank meeting stated that moderate economic growth alongside a gradual pickup in inflation continued to support its monetary policy settings, while jobs and housing remained key concerns.
The Reserve Bank of Australia said that March consumer price data had “generally increased confidence” in its forecast that core inflation would pick up to around 2% by 2018.