- EUR USD remains at 1.10 – USD EUR rate static at 0.90
- Euro still in low demand after retail sales disappointment – Monthly figure remains negative
- US Dollar holds fast after Fed market conditions index – Polls continue to cloud possible vote outcome
- German trade surplus expansion predicted – US election voting begins Tuesday afternoon
The Euro has remained an undesirable option to investors today, relative to the far greater demand seen for the US Dollar.
No major developments have taken place in the US, with the exception of a low-impact Fed labour market conditions index rising from -0.1 to 0.7 in October.
In the Eurozone, earlier losses have only been cemented by the September retail sales figure reprinting negatively on the month and declining slightly on the year.
Looking to tomorrow, the Euro may manage a brief recovery against the US Dollar, should demand for the USD drop off on uncertainties after voting begins for the 2016 election.
(Last updated November 7th, 2016)
The US Dollar has entered the week of the 2016 Presidential Election in a strong position overall, aided by a last-minute boost to the odds of a Clinton victory.
Euro Exchange Rate News: Mixed German Ecostats Fail to Inspire EUR Confidence
The Euro US Dollar exchange rate (EUR USD) has fallen considerably today. The -0.8% weakening is partly due to the current bullish state of the latter currency, although disappointing data from the Eurozone has also contributed to the latest decline.
Opening German factory orders for September fell from 0.9% to -0.6%, while Spain has recorded a major annual industrial production slowdown from 4.3% in August to 0.8% in September.
While minimal, a more recent source of support has been Germany’s October construction PMI, which has risen from 52.4 to 52.9.
In wider Eurozone news, one of the ‘founding fathers’ of the Eurozone, Professor Otmar Issing, has voiced concerns about the future of the currency union while the European Central Bank (ECB) keeps interest rates low, stating that;
‘If it persists for longer, then I think we will see dramatic consequences for insurance companies and pension schemes’.
US Dollar Euro Rally Triggered by Eleventh-Hour Boost for Clinton’s Presidential Campaign
Following on from the FBI clearing Hillary Clinton of any email wrongdoings, the US Dollar has rallied against the Euro and others today.
Although this gain is expected to drop off when Americans go to the polls tomorrow, for now, the US Dollar has remained a strong option for investors.
Polls have contrasted wildly about who could take the Oval Office early on Wednesday; some have put Clinton-Trump at a perilously close 45%-44%, while others have put the figure closer to 67%-33% respectively.
Future EUR USD Forecast: Euro Rally Unlikely despite Optimistic Forecast for Incoming Sales Stats
The Euro may well remain down against the US Dollar for the rest of the day, given the immense impact of the US Election on the value of EUR USD.
Upcoming Eurozone data will include September’s monthly and annual retail sales results, which are set to rise substantially on both the month and the year.
From the US, a trio of speeches from Fed official Charles Evans are due over today and tomorrow, though these are expected to have little impact when compared to the fever-pitch intensity of the US election on November 8th.
Current Interbank Exchange Rates
The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.10 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.90 today.