Euro declines against the Dollar before ECB Meeting
The Euro slid against the Dollar, gaining for the fourth day, yesterday. The ECB is expected to cut its main interest rate for the first time in 10 months to a record-low 0.5 percent today. Currently, interest rates are at 0.75%, but there as been demand for further cuts amongst fears over the economy. Germany’s manufacturing Purchasing Managers’ Index (PMI) fell to 48.1 in April from 49 in March. Also in Manufacturing PMI data reported a decline in France, Italy and Spain.
Meanwhile, Sterling stays higher against the Dollar – its highest level in 11 weeks. British construction production returned to growth in April, according to a survey – its greatest performance in six months. Construction PMI increased to 49.4, exceeding a forecast for 48.0. In March, the index was reported at 47.2. Also, the Pound increased against the Euro prior to the European Central Bank decision on interest rates.