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Euro US Dollar Exchange Rate Climbs as German Trade Surplus Posts November Expansion

  • EUR USD trades at 1.05 – USD EUR rate drops to 0.94
  • Euro gains enabled by German trade stats – US Dollar weakness seen despite Fed statement
  • French production figures due Tuesday – Rise in unsold US good expected

The Euro has advanced against the US Dollar and remained positive over the course of trading today, partly because of rising uncertainty about the future US-Russia relationship.

While President-Elect Donald Trump can boast a better relationship with the Russian President than many of his Presidential predecessors, the question remains as to just how Trump will respond to the ample evidence of hacking that influenced 2016’s Presidential Election.

In better US news today, Fed official Eric Rosengren offered a moderately hawkish statement about future US interest rate hikes, though this was not enough to push the US Dollar up against the Euro.

(Last updated January 9th, 2017)

The US Dollar slide comes after President-Elect Donald Trump continued to support Russia over the weekend, raising concerns about the closeness of relations between Trump and Vladimir Putin.

EUR USD Exchange Rate News: Advance for Euro comes alongside Supportive German Stats

The Euro US Dollar exchange rate has risen to 1.05 during trading today; this advance comes as Germany posts a trade surplus expansion in November from 19.4bn to 22.6bn.

Other notable Eurozone news today has been less favourable to the Euro, as Italy has seen a rise in unemployment in November from 11.8% to 11.9%, while Spanish business confidence in December has slipped from 0.9 to -2.6.

US Dollar Euro Demand Limited as Trump-Russia Connections Concern Observers

Interest in the US Dollar has been limited during trading so far today, on account of the latest controversial developments surrounding President-Elect Donald Trump.

Last week’s closing focus was on the revelation of evidence of Russian hacking during the 2016 election.

Despite apparently ‘acknowledging’ this evidence from multiple US security agencies, Trump’s lack of an immediate harsh response towards Russia raised concerns about his relationship with the Russian leader, President Vladimir Putin.

The situation puts Trump in a difficult position, as by taking action against Russia for hacking he risks ruining relations with Putin, though this could undermine his authority given that the hackers apparently supported a Trump election victory.

On the other hand, ignoring the opinions of domestic intelligence agencies in the future is unlikely to put Trump in a solid position to make informed decisions; many such situations are likely to arise in the first weeks and months of his Presidential tenure.

EUR USD Exchange Rate Forecast: Euro Expected to Firm if French Production Rises Tomorrow

The Euro could be in for another dose of good news in the near-term, if Tuesday morning’s French industrial production figures rise out of a negative range as expected.

In the US, news due over the afternoon will include speeches from Fed officials Eric Rosengren and Dennis Lockhart, both of whom could provide some clues as to when the next Fed rate hike will take place.

Current Interbank Exchange Rates

The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.05 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.95 today.