- Euro remains low after disappointing day – Unresolved issues lowered confidence in single currency
- US Dollar uncertain after Fed comments – Durable goods orders better-than-expected on the month
- Eurozone confidence stats incoming – Further Fed speeches also due
The Euro has had an uninspiring day of trading today, having failed to make any real gains against the US Dollar or any other regular peers. This has mainly been due to unresolved complications regarding Deutsche Bank, as well as further signs from Draghi that central banks are looking to pass the reins over to national governments when it comes to policy decisions.
The US Dollar has made slow but steady advances against its peers, on account of Fed Chair Janet Yellen offering further cautious comments while not ruling out a December interest rate hike, while the durable goods orders figure for August has bettered expectations by hitting 0% on the month instead of falling into a negative range.
Thursday’s notable Eurozone news is set to consist of a stagnation-forecast German unemployment rate result for September, as well as later optimistically-forecast Eurozone-wide confidence printings for the same month.
Another glut of Fed speeches is due from the US tomorrow, with Yellen speaking night and officials Dennis Lockhart and Patrick Harker, among others, commenting earlier on in the day.
(Last updated September 28th, 2016)
The US Dollar has generally been a better option overall, having risen slightly in most pairings due to optimism from a Fed official.
Euro Exchange Rate News: Draghi Remarks Raise Concerns alongside Deutsche Bank Issue
The Euro has trended tightly against the US Dollar (EUR USD) today, in addition to trending in a narrow range against most of its other regular peers.
The latest domestic data out of the Eurozone has been negative, with the GfK consumer confidence figure for Germany in October falling from 10.2 to 10.
Additionally, European Central Bank (ECB) President Mario Draghi has warned that with no further room to cut interest rates, more diverse policy action is required in order to maintain the effectiveness of the central bank’s operations.
The big news, however, has concerned the German government’s supposed response to the crisis faced by Deutsche Bank. While German newspaper Die Zeit concluded that the Government had been establishing a possible rescue plan, the German finance ministry has since denied this, leaving Deutsche Bank on the brink of disaster.
US Dollar News: Recovery seen after Previous Debate-induced Volatility
The US Dollar has largely risen above Tuesday’s uncertain movements against peers, having recorded gains of 0.3% against the Polish Zloty (USD PLN) and the South African Rand (USD ZAR), along with a 0.5% rise against the New Zealand Dollar (USD NZD). Against the Euro (USD EUR), little positive or negative movement has been recorded.
The most recent source of support for the US Dollar, after previous losses caused by profit-taking emerged after the Presidential election debate, has been Fed Vice Chair Stanley Fischer.
Speaking yesterday afternoon, Fischer acknowledged that;
‘With unemployment now below 5%, we’re beginning to see the fruits of a higher-pressure labour market. So, we’ve been getting there, and again, it’s pressure keeping, keeping interest rates low, that helps cause this to happen’.
In addition to making this optimistic statement, Fischer also voiced his discontent with interest rates around the zero mark, which raised hopes that a December interest rate hike could still be incoming.
Future EUR, USD Forecast: Further Draghi Comments and Range of Fed Remarks due Today
The Euro may well be shifted this afternoon when another speech from Draghi comes out, while the ECB annual research conference could also result in movement for the single currency.
For the US Dollar, the chances of movement are high, due to a number of Fed announcements being scheduled.
In addition to speeches from officials Neel Kashkari, James Bullard, Charles Evans and Loretta Mester being due, the ‘Buck’ may also be moved by the testimony of Fed Chair Janet Yellen to the House Financial Services Committee.
Current EUR, USD Exchange Rates
The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.1220 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.8916 today.