Euro finishes very slightly down against US Dollar

The euro weakened slightly against the US dollar yesterday, falling 0.01 cents (0.01%) to close the day at $1.4157.

• In early trading yesterday, the euro rose against the greenback as investor appetite for riskier currencies continued.
  
• Strong gains on European equity markets mid-morning, buoyed by improving economic data, encouraged investors to look beyond the safe-haven of the dollar. The euro’s gains were also extended following the release of better-than-expected final eurozone PMI manufacturing index figures, which climbed to a seven-month high of 40.7 in May, up on the provisional estimate of 40.5.
  
• The single currency’s gains were also buoyed by the release of US ISM manufacturing data, which showed a slowing in the sector’s rate of contraction. It came in at 42.8, comfortably ahead of the 42.2 expected, further improving sentiment that a global economic recovery may soon be underway.
  
• However, the euro ran out of steam in late trading yesterday as some traders booked profits. It eventually finished the day very slightly down.
  
• In trading so far today, the euro has weakened against the greenback as investors brace themselves for the release of important US housing data, a core economic driver, later today. Pending Home Sales (MoM) are out 15.00 BST. There are no major announcements out in the eurozone today.