Der Euro steigt leicht an – trotz sinkender Umsätze beim verarbeitenden Gewerbe

The euro rose against the dollar on European early Thursday as indices from France and Germany signaled that the eurozone economy had bottomed out after weakening at the end of 2018.

On Thursday morning, the euro was just below a two-week high against the dollar, after PMI had exceeded expectations – although manufacturing in Germany seemed to be down in February.

The dollar is approaching a two-week low. This is despite a largely balanced set of minutes from the recent Federal Reserve meeting, which suggests that interest rates could rise later in the year as the current uncertainty over the economy dissipates.

“The dollar gained some momentum after the minutes seemed to have reassured market participants, who held that the Fed would raise interest rates again this year – but overall, the protocol was in line with what the Fed did said in January, “said Daizuke Karakama, chief economist of Mizuho Bank.

However, the US dollar and the euro had fallen against the British pound, according to Reuters, after Prime Minister Theresa May and European Commission President Jean-Claude Juncker met.

The statement raised hopes that Brexit could be avoided without an agreement late next month, despite signs of political unrest in the UK. The reports indicate that May is under increasing pressure to push back the UK’s 29 March deadline to leave the EU.

Both the ruling Conservatives and the opposition Labor Party were hit this week by renditions of their more centralized legislators, most of whom want to stay in the EU.

The risks of a no-deal Brexit were set out by the Fitch Ratings Agency late Wednesday, setting the UK credit rating as “negative watch” – a preliminary step towards downgrading – stating that a disorderly Brexit a severe recession threatens.

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