The Euro was able to advance against the US Dollar on US uncertainty yesterday, but could be made rudderless by today’s ecostats.
- EUR USD traded at 1.05 on Tuesday – USD EUR fell from 0.95 to 0.94 yesterday
- Euro aided by French production yesterday – France’s industry figure topped forecasts
- US Dollar dipped as inventories rose – Lack of wholesale sales raised future concerns
- Greek inflation could disappoint today – US oil data may weaken USD demand
The US Dollar was held in check by inventories data on Tuesday afternoon, along with a lack of strong input elsewhere.
Euro US Dollar Exchange Rate Recap: EUR Advance Recorded after French Windfall
The Euro trended tightly against the US Dollar over Tuesday’s trading session, but generally held the advantage due to Eurozone investor optimism.
The biggest source of support for the Euro on Tuesday came from France, where national industrial production during November rose from 0.1% to 2.2%, far above forecasts.
Elsewhere, a general lack of input persisted throughout the day, with the last notable news being that Irish consumer confidence in December had fallen from 97.8 to 96.2.
USD EUR Exchange Rate Dropped on Rising Wholesale Inventories on Tuesday
The US Dollar dropped marginally against the Euro on Tuesday, remaining at a rate of 0.94 over the course of the day due to general negativity about future US economic developments.
The afternoon’s main US ecostat covered wholesale inventories in November, which rose above forecasts by 1%, the largest rise in 2 years.
While a rising figure can sometimes mean good news when it comes to economic data, this was not the case, given that a rise in inventories indicates that more stock is not being sold.
With December’s inventories result expected in the future, investors will be hoping for a strong negative figure, given the usual Christmas spending sprees of the month.
Today’s EUR USD Exchange Rate Forecast: US Oil Stocks to Cause Day’s Biggest Currency Shifts
Today is expected to be the calm before the storm for Eurozone data, while the next big US announcements aren’t expected until Thursday.
While it is expected to be low-impact, Eurozone news to watch out for today includes Greek inflation rate figures for December, as well as Spanish industrial production results.
Annually in November, Spanish production is forecast to rise from 05% to 1%. Although forecasts have not been released for Greece’s data, the fact that inflation was negative on the year in November bodes poorly for this morning’s releases.
While similarly limited, today’s US data is expected to be slightly more notable, with crude oil stock changes for early January set to be announced this afternoon.
Inventories of crude are currently expected to rise, which could weaken US Dollar demand due to increased stocks of oil lowering the overall commodity price.
Current Interbank Exchange Rates
At the time of writing, 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 0.94 today.
