The primary currency pair continues to weaken at the end of the week. The current exchange rate for EURUSD stands at 1.0805.
May statistics showed that business activity in the US accelerated to the highest level in two years. The preliminary value of the Markit Services PMI increased to 54.8 points in May from 51.3 points previously, and the Manufacturing PMI in May rose to 50.9 points from 50.0 points.
At the same time, several manufacturers reported an increase in prices for a range of resources, providing one of the reasons for revising expectations regarding the US Federal Reserve interest rates. Such signals are pro-inflationary and are negative news for the Fed.
According to CME’s FedWatch monitor, the timing for the Fed’s first interest rate cut has now been pushed from November to December.
Source: Roboforex
