Euro exchange rate today 5/16/2025: Euro rises again after a series of new economic data

EUR/USD world exchange rate today May 16, 2025

EUR/USD edged up 0.15%, approaching 1.1200. The euro strengthened mainly due to selling pressure on the US dollar after the US released weaker-than-expected economic data, especially the producer price index (PPI) and retail sales for April.

The U.S. Dollar Index (DXY), which measures the greenback's strength against six major currencies, fell 0.3% to trade around 100.70. The weakness came after a report from the U.S. Bureau of Labor Statistics showed that factory inflation had cooled.

Specifically, the overall PPI in April increased only 2.4% compared to the same period last year, lower than the forecast of 2.5% and the 2.7% of March. The core PPI index, excluding food and energy prices, increased 3.1%, as expected, but still lower than the adjusted 4% of the previous period.

Compared to the previous month, the headline PPI and core PPI both unexpectedly fell 0.5% and 0.4%, respectively. Previously, the US consumer inflation (CPI) data released on Tuesday was also lower than expected.

The weak data reduces the likelihood that the Federal Reserve will maintain its policy stance of tightening monetary policy with higher interest rates. However, the Fed remains cautious, preferring to control inflation expectations rather than react hastily to short-term data, especially after President Donald Trump’s recent tariff policies.

In April, retail sales, a key indicator of US consumer purchasing power, rose slightly by 0.1%, better than the forecast of no change. Compared to the same period last year, the increase reached 5.2%, showing that consumption still maintained a steady growth momentum.

Bloomberg reports that the US administration is not pursuing currency-related provisions in trade agreements, helping the US dollar regain some of its value.

However, experts say that negative sentiment still pervades the USD. This reflects instability and lack of confidence in the USD's fundamental strength, especially when the market is still concerned about macroeconomic factors and unclear trade policies.

The euro, on the other hand, has lost some of its gains on the day, weighed down by the US dollar. However, it remains higher than many other riskier currencies, despite the European Central Bank (ECB) leaving open the possibility of further interest rate cuts as inflation shows signs of cooling.

One of the most notable statements came from François Villeroy de Galhau, Governor of the Bank of France, who said that the protectionist policies of the Trump administration would only cause inflation in the United States and not affect Europe. This could pave the way for the ECB to continue lowering interest rates in the summer to support the regional economy.

Another important factor affecting the euro is the progress of trade negotiations between the EU and the US. Although the talks have not made much progress, German Finance Minister Lars Klingbeil said the EU is prepared to respond in case of no agreement. However, he stressed that the EU's primary goal remains to reach a positive agreement with the US.

During the European session, economic data was also updated. Eurozone GDP in the first quarter increased by only 0.3%, lower than the previously announced figure of 0.4%. However, compared to the same period last year, the growth rate was still 1.2% as forecast.

In addition, employment figures for the first quarter increased by 0.3%, much higher than the initial forecast of 0.1%, showing that the labor market still retains certain strength despite slowing economic growth.

Euro exchange rate today 5/16/2025: Euro rises again after a series of new economic data

Domestic Euro exchange rate today 5/16/2025

The Euro exchange rate at the State Bank's exchange office for buying and selling has slightly decreased compared to yesterday, currently at: 26,550 VND - 29,345 VND.

In the "black market", the black market Euro exchange rate as of 4:30 a.m. on May 16, 2025 also decreased slightly, trading around 29,268 VND/EUR.

EUR exchange rates at commercial banks are as follows: