The Euro-to-Dollar rate is expected to begin trading around 1.1299 Sunday after falling -0.2% during the previous week, although the exchange rate is likely to experience further losses over the coming days after economic data and price action on Friday undermined support for the single currency.
The Euro weakened notably on Friday after IHS Markit PMI surveys revealed a likely contraction in manufacturing output and a slowdown in service sector activity that has reinforced the negative outlook for the bloc's economy and single currency.
The Euro was tipped for recovery on Tuesday after an influential survey of sentiment showed Eurozone investment professionals becoming much less pessimistic about the outlook for the single currency bloc's economy this month.
The Euro-to-Dollar rate is to begin trading around 1.1324 Sunday after rising one cent in the previous week, although with the market price having fallen below a key moving-average of late, the outlook is an uncertain one for the days ahead.
Europe's single currency is on course for large gains this year, according to analysts at Bank of America and Morgan Stanley, who say they're anticipating a 2019 demise of the U.S. Dollar rally that has the kept the euro on its back foot for the last 12 months.
The Euro-to-Dollar rate slipped lower Thursday after President Donald Trump threatened the European Union with "severe" trade tariffs and economic pain, although there is still scope for the tussle between Brussels and Washington to become a more of a pressing concern for the single currency in the weeks ahead.
The Euro scored a modest gain over a softer Dollar on Monday but it faces a tough few quarters ahead, according to analysts at Rabobank and Commerzbank, who say the European Central Bank's (ECB) recent change of interest rate guidance has undermined the outlook for the single currency.