Euro finishes strongly up against the US Dollar on Friday

The euro strengthened considerably against the US dollar on Friday by 2.15 cents (1.54%), finishing the day at $1.4158.

• In early trading on Friday, the euro hit its highest level against the greenback since early January after improved risk appetite swept the market. In particular, healthy demand for US debt after a series of successful US Treasuries auctions aided the single currency’s gains.
  
• Strong rises on European equity markets also weakened demand for the safe-haven of the dollar as investor demand for riskier assets increased.
  
• However, weaker-than-expected Preliminary GDP figures out in the US mid-afternoon tempered risk appetite in the market to some extent. This month’s reading of -5.7% was a slight improvement on the -6.1% the month before but much worse than the -5.5% analysts had forecast.
  
• Nevertheless, the euro still finished well up against the dollar on the day, closing at its highest level since 18 th December last year and marking an impressive 6.7% rise in May.
  
• In trading so far today, the single currency has resumed its rise against the greenback as improved risk sentiment continues to sweep the market.
  
• There are no major announcements out in the eurozone today, whilst in the US, ISM Manufacturing PMI figures are due at 15.00 BST.