The European Single Currency, euro, on Tuesday, May 22, appreciated by rose 0.3 percent to $1.1827 EUR=EBS, after earlier falling to its lowest level since around mid-November.
This week will bring about a further test for determined euro bulls with the release of “flash” PMI data for May on Wednesday, and markets waiting to see whether the first-quarter slowdown in Europe spilled over to later months.
“We still look to Wednesday’s PMIs as a flash point for the euro and see downside risks to the manufacturing numbers,” said Elsa Lignos, Global Head of FX Strategy at RBC.
Analysts at Rabobank said they had revised down their target for euro versus the dollar to 1.15.
“While dollar strength is still a factor, euro weakness is against a large part of the story,” said the bank in a note to clients,” said the Rabobank analysts in a note.
