Forex – The PMI boosted the euro after the minutes of the Fed

© Reuters. – on Thursday, the euro strengthened against the dollar, while the indices of purchasing managers in France and Germany reported that the economy of the euro area could reach the bottom after its downturn at the end of 2018.

At 03: 30 (08: 30 GMT), the euro was at 1 1354 USD, just below the highest course of the last two weeks against the dollar after the PMI index has exceeded expectations – even while the German manufacturing sector seemed to contract in February.

The dollar index, which measures the greenback against a basket of major currencies was 96,297, the lowest level of the past two weeks. This was despite the minutes of the last meeting of the federal Reserve indicating that interest rates could still increase later in the year if the current uncertainty regarding the economy disappeared.

“The dollar has appreciated in value, the report seemed to have appeased the actors in the market who clung to the idea that the Fed would increase its rates once more this year – but all in all, the report went forward in the direction of what the Fed had said in January,” said Daisuke Karakama, chief economist of the market at the Mizuho Bank.

However, the dollar and the euro are falling relative to the pound sterling, after an optimistic statement following a meeting between the First minister Theresa May and the president of the european Commission, Jean-Claude Juncker.

The statement has rekindled hope that a “Brexit without agreement” can be avoided at the end of next month, despite the growing signs of political disarray in the United Kingdom. Reports suggest that May is under growing pressure to postpone the date of 29 march, when the Uk should leave the EU.

The conservatives in power and the labour party of the opposition have been upset this week by the defections of their legislators more centrists, most of whom wish that the United Kingdom remains within the EU. As a result, neither of the two parties has immediately changed its position on the Brexit, but the bursting seems to complicate the arithmetic of obtaining a parliamentary majority for any kind of agreement on the Brexit.

Elsewhere in the night, the australian Dollar lost 1% against the greenback after the announcement of a ban of import of coal by one of the largest chinese ports. The report has illustrated the sensitivity of the Australian chinese demand for its commodities. The kiwi was also slightly decreased after the report.

And the south african rand has reached a summit a week, recovering the losses suffered on Wednesday after the government announced a bailout of 4.9 US $ to the power company in distress Eskom. The rescue was less than expected, but comes at a time when the budget deficit is at its highest for 10 years.

-Reuters contributed to this report.

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