The Euro US Dollar exchange rate climbed by 0.4% on Thursday, but may be reversed today based on Eurozone data forecasts.
- EUR USD rate hit 1.08 on Thursday – USD EUR dropped to 0.92
- Euro interest tied to PPI data – Is Eurozone inflation set to spike?
- US Dollar slid on Trump phone call – Anti-refugee stance further lessened support for new President
- Euro future uncertain due to PMI forecasts – US Dollar bounce possible on jobs data
The US Dollar floundered against the Euro on Thursday due to a diplomatic incident, but could bounce back on today’s jobs data.
Euro Demand Bolstered by PPI Stats on Thursday, Implications of Rising Inflation Ahead
The Euro US Dollar exchange rate rose over Thursday’s trading session, thanks in part to the morning’s Eurozone-wide producer price index figures for December.
Showing the rate at which prices for sold items was rising, the figures increased on both the month and the year in December, raising hopes of increased Eurozone inflation and more European Central Bank (ECB) policy tightening in the future.
US Dollar Weakened after Trump’s Turnbull Phone Call Sees US Confidence Erode
The new President attracted criticism for his behaviour when talking to Australian Prime Minister Malcolm Turnbull; after Turnbull brought up an Obama administration deal to transfer refugees to the US, Trump allegedly hung up and quickly took to Twitter calling the arrangement a ‘dumb deal’.
Given that careful diplomacy is usually used when two world leaders meet, the incident reflected poorly on Trump and lowered confidence in the US Dollar considerably.
Today’s EUR USD Forecast: Mix of Eurozone PMIs Incoming, US Jobs Stats Forecast to Rise
While the Euro had the advantage against the US Dollar yesterday, the pairing could undergo an exchange rate reversal today given how mixed predictions have been for incoming Eurozone data.
Eurozone-wide services and composite PMIs are expected to fall this morning, while retail sales in December are due to slow on the year. One more positive prediction is the annual sales figure, which is predicted to have risen across the Eurozone.
Over in the US, jobs data covering the unemployment rate and non-farm payrolls in January will be the day’s big news.
Both releases are expected in the early afternoon and payrolls have been optimistically forecast to jump from 156k to 175k. Unemployment is due to stagnate at 4.7%, while elsewhere, January services and composite PMI results are due to rise in their finalised forms.
Recent EUR USD Interbank Exchange Rates
At the time of writing, the Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.08 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.92.