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Euro US Dollar Exchange Rate Gap Narrows after Trump Muses Mexican Import Tax

  • EUR USD rate falls to 1.06 – USD EUR rises to 0.93
  • EUR USD demand low on limited Eurozone data – French confidence rises in January
  • US Dollar positive despite further Trump news – President proposes harsh tax from Mexico to pay for anti-immigrant wall

The Euro has remained down against the US Dollar today, though the losses seen in the EUR USD exchange rate have nonetheless been less compared to Thursday’s trading.

US Dollar appeal has diminished lately, on the news that Donald Trump has considered an import tax on goods from Mexico, as a way of paying for his controversial great southern border wall.

Eurozone news has seen a rise in French consumer confidence during January, from 99 to 100 points as expected.

(Last updated January 27th, 2017)

US Dollar Euro exchange rate advances have been recorded despite Trump comments, though the controversial President could still cause another near-term USD crash with his unexpected remarks.

Euro US Dollar Demand Slides after Italian Retail Sales Slump

Following a day of mixed German Ifo data, the Euro has fallen against the US Dollar today.

Ecostats from the Eurozone have failed to excite investors; German GfK consumer confidence has risen in February and Spanish unemployment has reduced over Q4, but Italian monthly retail sales have fallen to a negative range.

Additionally, at 18.63%, the level of Spanish unemployment still remains extremely high when compared to most other Eurozone nations.

US Dollar Advances, though Trump’s Policy Plans Continue to Cause Concern

The US Dollar Euro exchange rate has risen by a small amount today, as investor optimism about Trump’s presidency once again rises.

Trump’s latest plans for the economy and the nation haven’t been especially encouraging, however; as well as voicing strong support for the controversial torture practice of waterboarding, Trump has also reiterated that he wishes to start building a US-Mexico border wall;

‘As soon as we can. As soon as we can physically do it. I would say in months. Certainly planning is starting immediately’.

Trump also remains committed to Mexico reimbursing the US for the construction after completion, though ‘perhaps [in] a complicated form’. In response, Mexican President Enrique Pena Nieto has repeated that Mexico will be doing nothing of the sort.

More positively, the Dow Jones industrial average climbed over 20,000 for the first time on record on Wednesday, something attributed to high confidence in Trump’s ability to kick-start the US economy.

Future EUR USD Forecast: US Dollar in Focus as Housing and GDP Stats Come In

Remaining Eurozone data this week is not expected to be high impact, with the most notable releases expected to be French and Italian consumer confidence figures on Friday morning, along with Italian business confidence stats around the same time.

The Euro is unlikely to rally on these results, as while a marginal French confidence rise is expected, an Italian consumer confidence drop is predicted along with no change at 103.5 for the business variant.

More notable US developments, outside of any surprise Trump announcements, will consist of composite and services flashes this afternoon, along with new home sales figures a little later on.

Friday’s US ecostats will cover durable goods orders in December as well as the Q4 GDP growth rate results.

In brief, the US services PMI is forecast to rise, while home sales are due to tick up. Tomorrow, durable goods orders are set to rise from -4.6% to 2.6%, while GDP growth is forecast to slow on the quarter from 3.5% to 2.2%. In the latter case, such a result could dampen US Dollar demand, potentially triggering a late rise for the EUR USD exchange rate.

Current EUR USD Interbank Exchange Rates

At the time of writing, the Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.07 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.93 today.