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Euro US Dollar Exchange Rate Drops after US Jobs Data

  • EUR USD rate trends at 1.07 – USD EUR rate rises to 0.93
  • Euro unsettled by Italian manufacturing stats – Spain and Germany post better results
  • US Dollar jumps on surprising jobs and PMI data – Major gains reduce concerns over Trump

The Euro has fallen by -0.4% against the US Dollar today after the afternoon’s US data, which showed a trio of major improvements for the US in the first month of 2017.

As well as January’s Adp employment change showing a shift up from 151k to 246k, the ISM and Markit manufacturing PMIs for the same month both jumped as well.

(Last updated February 1st, 2017)

The Euro has fallen marginally against the US Dollar today, though Eurozone domestic data has been largely positive so far. As well as the Spanish manufacturing PMI rising in January, Germany and the overall Eurozone have also posted gains in this field.

Less positive have been the Italian variants, which have shown slight drops for both the Investec and Markit manufacturing PMIs.

US news of late has mainly focused on Donald Trump’s pick for the Supreme Court, Neil Gorsuch. While Gorsuch’s potential approval as a court official is largely expected to maintain the continuity of previous courts, the fact that Trump presented his choice in the manner of a reality TV final rankled some observers and tarnished what should have been a solemn occasion, heaping further doubt on Trump’s Presidential character.

(Last updated February 1st, 2017)

The Euro has remained up by around 0.8% against the US Dollar today, following an official retort to Peter Navarro’s earlier claims. Responding to the news while talking at a press conference, German Chancellor Angela Merkel declared that;

‘Germany is a country that has always called for the European Central Bank to pursue an independent policy, just as the Bundesbank did that before the Euro existed. Because of that we will not influence the behaviour of the ECB. And as a result, I cannot and do not want to change the situation as it is’.

This has left the ball in the US court, though it remains to be seen if officials will be able to save face without further devaluing the US Dollar in the future.

(Last updated January 31st, 2017)

The US Dollar has once again suffered under Donald Trump’s administration, sliding notably after accusations were levelled at Germany for its economic activities.

EUR USD Exchange Rate Rallies on String of Supportive Eurozone News

The Euro has climbed by 0.4% against the US Dollar today, in the wake of a number of EUR-boosting announcements concerning GDP growth rates and unemployment, as well as Eurozone-wide inflation.

French and Eurozone GDP has climbed in Q4, while Eurozone-wide inflation has climbed from 1.1% to 1.8% on the year in January.

Further support has come from Eurozone jobs data, which has shown falling unemployment in December across the Eurozone as well as in Germany during January.

US Dollar Crumbles as Trump Trade Head Claims Germany is ‘Obstacle’ to US-EU Trading

The US Dollar Euro exchange rate has dropped by -0.4% today, following the news that one of Donald Trump’s key trade officials has made astonishing negative claims about German economic activities.

Speaking to the Financial Times, National Trade Council head Peter Navarro claimed that;

‘A big obstacle to viewing TTIP as a bilateral deal is Germany, which continues to exploit other countries in the EU as well as the US with an ‘implicit Deutsche Mark’ that is grossly undervalued’.

These claims of exploitation will do nothing to endear the new administration to Eurozone trade officials and are instead likely to widen rifts between the two powers at a critical junction in economic and political history.

Future EUR USD Forecast: Further Euro Gains Possible on Incoming PMI and Sales Stats

The week has already been a busy one in terms of Eurozone news, but further key announcements are still expected over the remainder of the week.

Wednesday will bring finalised Eurozone-wide manufacturing PMIs, which are forecast to rise overall, while Thursday morning will bring Spanish unemployment stats for January; a potentially damaging rise in unemployed persons is predicted.

Closing the week’s Eurozone news on Friday will be services and composite results for January along with December’s retail sales figures. Services are expected to dip across the Eurozone, while a monthly rise in Eurozone retail sales may be countered by a forecast slowdown in sales on the year.

Asides from any surprise Trump announcements (which seem highly likely given the past week), the US Dollar is next most likely to move on Wednesday afternoon’s manufacturing PMI results, as well as the later Fed interest rate decision.

The PMI is expected to show a rise for both the ISM and Markit measures, while the first Fed rate decision of the year is set to show no change at present from 0.75%.

Current Interbank EUR USD Exchange Rates

At the time of writing, the Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.07 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.93 today.