EUR/USD Exchange Rate Continues to Tumble as US Dollar Capitalises on Rival Weakness
The US Dollar (USD) continues to rally today, continuing to push the Euro to US Dollar (EUR/USD) exchange to its worst levels in two months. The pair has seen a sharp recoil as the US Dollar benefits from weakness in its biggest rival, the Euro (EUR).
Since opening this week at the level of 1,2137, EUR/USD has been trending sharply lower as the US Dollar continues its rebound rally.
As of Thursday afternoon, EUR/USD has shed over a cent and a half and trends in the region of 1.1967. This is the worst level for EUR/USD in two months, since the beginning of December.
If tomorrow’s US Non-Farm Payroll report impresses investors as well, the pair may be in for even further losses.
Euro (EUR) Exchange Rates Tumbling despite Forecast-Beating Retail Sales Stats
The Euro continued to tumble against its resurgent rival the US Dollar, despite most of this week’s key Eurozone data beating forecasts.
Eurozone manufacturing and services PMIs were largely better than expected. Today’s Eurozone retail sales results from December were also better than forecast.
Eurozone retail sales were expected to improve to 1.6%, but jumped to 2.0% month-on-month. The yearly figure rose to 0.6% rather than the expected 0.3%.
Investors continued to rally in the US Dollar instead however. This is because coronavirus vaccine uncertainties continue to loom over the Eurozone outlook.
US Dollar (USD) Exchange Rates Benefit from Strong Data Ahead of NFP Report
The US Dollar is still surging higher today, continuing the recovery rally seen in recent weeks. It continues to benefit from coronavirus uncertainty weighing on its rival the Euro, but it is also gaining thanks to strong US ecostats.
Ahead of tomorrow’s key US Non-Farm Payroll report, recent US data is making US Dollar investors more optimistic about the health of the US job market.
Yesterday’s ADP employment change data beat forecasts, and today’s US jobless claims stats also saw less new jobless claims than expected.
Euro to US Dollar (EUR/USD) Exchange Rate Awaits US Non-Farm Payrolls Report
Friday’s American session will see the publication of January’s highly anticipated US Non-Farm Payrolls report. Market expectations are optimistic following strong employment data from other sources throughout the week.
As the NFP report is a key indicator of US economic health, the results of the report could have a big impact on the US Dollar’s movement in the coming sessions.
Weaker than expected US job stats could cause the US Dollar to shed some of its recent strength and make it easier for EUR/USD to recover for example.
On the other hand, strong US NFP data could boost the US Dollar’s rally and EUR/USD could be in for even deeper losses.
Euro to US Dollar exchange rate investors will also be closely watching Germany’s December factory orders results due tomorrow.