- Euro stable against USD after data releases – Movement comes in spite of US positivity
- Earlier Italian stats less supportive – Drop recorded in wage inflation
- US Dollar fails to advance on domestic data – Durable goods orders rise in April
- US manufacturing data incoming – Fed speech also impending
The Euro has managed to hold onto its gains against the US Dollar this afternoon, with positivity potentially stemming from the continued uncertainty present among US economists.
Earlier in the morning, Italy gave the Euro a knock when wage inflation on the year in March fell from 0.8% to 0.6%.
Other ecostats of note have included the US durable goods orders outcome for April, which has shown a rise from 1.9% to 3.4%. Against the trend, however, this news has not resulted in a significant improvement for the ‘Buck’.
(First published 10:43 26.05.2016)
The Euro has managed to show resilience against most of its rivals today despite alarming comments on the possible effects of a ‘Brexit’ on the Eurozone.
As well as standing firm against the US Dollar, the Euro has posted modest gains against the Pound – with EUR/GBP moving away from a recent multi-month low.
The US Dollar, meanwhile, has been putting on a fairly lacklustre performance following yesterdays disappointing US Services PMI.
Eurozone Economic News: Severely Limited Eurozone Data Releases Compound ‘Brexit’ Effect Speculation
The single currency has been a somewhat unstable option for investors today, having made gains of 0.2% against the US Dollar (EUR/USD), Pound Sterling (EUR/GBP) and the Polish Zloty (EUR/PLN), although it is trending in a tight range elsewhere.
The latest data released concerning the Eurozone has been limited in the extreme, with only Spain’s finalised GDP growth rate stats for the first quarter coming out so far.
On the year, a dip from 3.5% to 3.4% has been recorded, while the quarterly outcome has been a reprint of 0.8%.
Elsewhere, Eurogroup President Jeroen Dijsselbloem has voiced concerns that a ‘Brexit’ could have a negative impact on the single currency bloc, stating:
‘Brexit is obviously a risk at this moment, and in the short term probably one of the bigger risks to our economy’.
US Dollar is a Poor Prospect as Chances of Fed Rate Hike Hang in the Balance
The ‘Buck’ has mainly declined against its competitors today, with losses including -0.5% against the Canadian Dollar (USD/CAD) and the Norwegian Krone (USD/NOK).
Other movement has been distinctly uninspiring, thanks to investor uncertainty over the likelihood of a Fed interest rate hike occurring in June.
Most recently, the Fed’s Robert Kaplan has voiced support for a near-term rate hike, although current opinions are that the threat of a ‘Brexit’ may limit the Fed’s activity, regardless of how good US domestic data is in the meantime.
Future EUR, USD Forecast: US Claims and Durable Goods Data Ahead
The afternoon will bring with it the announcement of the US’s initial jobless and continuing claims results for mid-May, although durable goods orders outcome for April will be the more important release, expected to come in the afternoon and has been forecast to fall from 1.3% to 0.5%.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1173 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8952 today.