Currency News: US Dollar Falls Against Euro For 5th Straight Week
Currency News
The value of the dollar fell last week for the fifth consecutive week, as the euro reached a three-month high against the greenback. The euro traded at $1.1446 at the end of the week. i Know First correctly predicted that the EUR/USD currency pair would increase over the last two weeks, meaning the value of the euro would appreciate in comparison to the dollar.
The highlighted currency pair was the top pick in the currency forecast from May 1st, 2015. Over the next 14 days, the value of the euro increased 1.58% against the dollar, a solid return for only 2 weeks. Meanwhile, the ICE US Dollar Index, which measures the dollar’s value against a basket of six other currencies, was down 0.2% last week.
Expectations for an interest rate hike have shifted this year, as they are no longer expected to take place in June. After expectations being pushed back until September, most analysts now expect the Federal Reserve will raise interest rates for the first time in December. Higher interest rates usually help the dollar because they increase the return on dollar-denominated holdings. A delay in raising interest rates makes the US dollar bearish against the euro going forward as well until economic data turns around.
