EUR/USD Exchange Rate Continues This Week’s Sharp Tumble
A combination of Eurozone coronavirus jitters and a recovering US Dollar (USD) helped push the Euro to US Dollar (EUR/USD) exchange rate to new multi-month lows today. Investors remain anxious about the Eurozone outlook.
This week’s EUR/USD losses have been even sharper than the ones seen last week. EUR/USD tumbled from the level of 1.2171 to 1.2137 last week, and this week has plunged over a cent already.
At the time of writing on Wednesday, EUR/USD is trending near a low of 1.2009, the worst level for the pair since the beginning of December.
Euro (EUR) Exchange Rates Lack Drive as Clouds Loom over Eurozone Outlook
The Euro (EUR) has been broadly unappealing lately. Investors have been getting more hesitant to buy the Euro, amid concerns over the Eurozone’s coronavirus outlook.
The EU is struggling to secure the promised number of coronavirus vaccine doses, and the uncertainty around vaccine distribution seems set to last.
As a result of coronavirus jitters weighing over the Eurozone outlook, stronger than expected Eurozone PMIs were unable to boost demand for the Euro either.
This is because the data still showed weakness in the Eurozone economy last month, and this weakness is likely to persist for some time to come.
US Dollar (USD) Exchange Rates Continue Rebound Rally
The US Dollar has seen a surge in demand over the past week, as investors buy the safe haven currency back from its worst levels.
It has been due largely to profit-taking, but also weakness in its biggest rival the Euro. The US Dollar has also been benefitting slightly from safe haven demand amid global coronavirus pandemic concerns.
The US Dollar’s appeal found some extra support today, in the form of ADP’s employment change report, which printed better than expected.
Today’s US non-manufacturing PMI report also beat forecasts.
Euro to US Dollar (EUR/USD) Exchange Rate Awaits Eurozone Retail and US NFP Stats
There are more notable Eurozone and US ecostats due through the rest of the week, which could drive late-week Euro to US Dollar exchange rate movement.
Tomorrow’s Eurozone retail sales results could be even more influential than Eurozone PMIs if they surprise investors.
Strong Eurozone retail stats could be relieving after weak German figures earlier in the week, and could help the Euro to trade on stronger ground.
On the other hand, weaker Eurozone retail sales results could cause Eurozone coronavirus jitters to worsen and EUR/USD may see bigger pressure.
Thursday will also see the publication of US jobless claims and factory orders stats. While these could be influential, US Dollar investors will be anticipating Friday’s US Non-Farm Payrolls report.
The NFP report is a key indicator of US economic health, so Friday’s job data could have a big impact on the Euro to US Dollar (EUR/USD) exchange rate.