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Euro US Dollar Exchange Rate Rebounds after Further Trump Volatility

  • EUR USD appreciating at 1.09 – USD EUR rate up down at 0.91
  • Euro in demand after USD flop – Dutch inflation up in October
  • US Dollar slides day after Trump win – Concerns about policies sink in

The US Dollar has found itself in low demand during trading today, which has brought about a converse rise for the Euro. The latest US developments have mainly been speculation, as the nation comes to terms with Donald Trump being its next President.

The policies and pledges of Trump are in focus, with concerns being that the President-Elect will stick by the radical promises about deportation and immigration that he made whilst campaigning.

Meanwhile, in the Eurozone, the Euro has appreciated against other peers including the US Dollar, though the only positive data so far has been that Dutch inflation has risen on the year in October from 0.1% to 0.4%.

(Last updated 08:50 November 10th, 2016)

The Euro has reversed its position against the US Dollar today, declining in the wake of a surprise recovery for the USD.

Although no further news from the US has come out recently, the fact that Trump made a relatively calm acceptance speech and promised to put billions into infrastructure has appeased some investors, at least temporarily.

(Last updated 14:40 October 9th, 2016)

The US Dollar has been rocked over the past 24 hours, owing to Republican candidate Donald Trump claiming an unexpected win in the Presidential Election.

Euro US Dollar Exchange Rate News: Widespread Gains for EUR due to US Influences

The Euro has been a highly demanded currency so far today, rising in the EUR USD exchange rate by 0.8% and posting further massive gains of 1.9% against the Australian Dollar (EUR AUD) and 3% against the South African Rand (EUR ZAR).

While the Euro has since dropped off against the US Dollar, at the height of the USD’s decline, the EUR USD exchange rate rose to 1.12.

Domestic data from the Eurozone has been sparse so far today, with September’s Dutch manufacturing production rising from 1.8% to 2.4% and the Slovakian trade surplus more than doubling in September.

Previously, the Euro had been supported on Tuesday by the German trade surplus for September also expanding.

US Dollar Euro Exchange Rate Fluctuates Wildly as Markets Process Trump Presidency

Today is a historic one for the United States, as it comes to terms with the news that Donald Trump will be the 45th President. The outsider had been forecast to lose by numerous polls, but has managed to beat the odds and claim victory against Democratic rival Hillary Clinton.

While the US Dollar Euro exchange rate tumbled from a high of 0.90 to 0.88 when the tide started turning in Trump’s favour, the USD has since recovered in the pairing to the lower end of 0.90.

Part of this recovery has been attributed to Trump himself, who lacked his previous caustic rhetoric when making his victory speech, and instead spoke of building a more ‘united’ US.

Commenting on what a post-election future could look like more broadly, M&G Investments Head of Retail Fixed Interest Jim Leaviss said;

‘The big implication for investors of what happened last night is this: with no income growth for most populations in developed world economies since the Great Financial Crisis (with the exception of the 1%), the established parties and candidates are being heavily punished in elections’.

US Dollar bills

Future EUR USD Forecast: High Volatility Likely as Trump Begins Planning First Moves

While Trump has won the election, there will still be a transitionary period between the Republican and current President Barack Obama, with the changeover coming on January 20th.

Before that time, any comments from the President-Elect could provoke high investor uncertainty policy, particularly if they touch on his promises of mass deportations, banning Muslims from entering the country and building a Mexican border wall.

In the comparatively quieter Eurozone, the near-term will bring Portugal’s Q3 unemployment rate and September trade balance figures. Unemployment is forecast to rise from 10.8% to 11.1%, while the current trade deficit is predicted to be reduced on the month.

At this point in time, even negative news is not expected to weaken the Euro overall, given how much it has been able to capitalise on US-induced market uncertainty.

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.