Euro finishes up against the US dollar

The euro strengthened by 1.43 cents (1.01%) against the US dollar yesterday, finishing the day at $1.4300.

• In early trading yesterday the euro strengthened against the dollar, as improved risk sentiment continued to sweep the market. Monday’s better-than-expected manufacturing data from China, the UK, the US and the eurozone drove the single currency’s gains throughout the day, as investors speculated we may really be on the cusp of global economic recovery.
  
• However, the worst eurozone unemployment figures since September 1999 out mid-morning dampened investor demand for the single currency to some extent. Unemployment rose to 9.2% in April.
  
• But much better-than-expected US Pending Home Sales data stoked demand for riskier currencies like the euro. With the property market such an important driver of the US economy, this month’s reading of 6.7% was a positive sign it may be on the mend. Analysts had been expecting 0.4%.
  
• In trading so far today, the euro is slightly up against the greenback as improved risk appetite continues to sweep the market.
  
• There are no major announcements due in the eurozone today, whilst in the US, two important figures are set to be released. Firstly, ADP Non-Farm Employment Change data is out at 13.15 BST, followed by ISM Non-Manufacturing PMI data at 15.00 BST.