- Euro unstable on ECB action fears – Declines in Latvian and Slovenian unemployment seen
- US Dollar recovers on raised Fed rate hike bets – Afternoon’s production figures disappointing overall
- ECB data incoming – Late Fed speech due today
The Euro to US Dollar exchange rate has worsened today, on account of the latest ecostats out of the Eurozone. While national results have been limited to the earlier unemployment figures, the report that six Eurozone nations, including Italy, may risk breaking EU rules with their 2017 draft budgets has done little to inspire confidence in the Euro.
In US news, the medium-impact October industrial and manufacturing production results have printed negatively on the year, though the appeal of the USD has remained undiminished throughout.
Looking ahead, the US Dollar may be influenced against the Euro tonight by a speech from Fed official Patrick Harker.
(Last updated November 16th, 2016)
The Euro has slipped against the US Dollar today, falling from an earlier tight trending to drop by -0.2%. The day’s only real Eurozone news has failed to inspire a rise in the ‘Fiber’ exchange rate, consisting of low-impact Slovenian and Latvian unemployment rate drops in September and Q3.
With the odds of a December Fed interest rate hike still at their highest point of the year, the US Dollar has been buoyant, though just how long this optimism lasts remains to be seen.
Coming up on Thursday afternoon will be ECB account minutes, as well as a later speech from ECB official Peter Praet.
(Last updated November 16th, 2016)
The USD EUR exchange rate has appreciated today, in the wake of dramatic increases in the odds of a December Fed interest rate hike.
Euro Exchange Rate News: Obama’s Greek Visit Breaks Silence on Slow Eurozone Data Day
The Euro has failed to make any real gains against the US Dollar today, on account of a simple lack of domestic data for investors to refer to.
Recent direct news from the Eurozone has been limited to Greek contributions, where US President Barack Obama has been visiting the debt-riddled nation on what has become his farewell tour.
Speaking on Tuesday, Obama stressed of the Greek situation that;
‘I know it’s a painful and difficult time, especially for Greek workers and families, pensioners and young people. [Greece needs] some kind of debt relief mechanism [to have] the space to return to growth and start creating jobs again’.
Elsewhere, the ongoing concern has been that the European Central Bank (ECB) could consider easing measures in response to a Trump election victory; this fear has been present in the background ever since the Republican’s win last week.
US Dollar Sees Moderate Demand despite Concerns of Trump Management Infighting
The US Dollar Euro exchange rate has traded narrowly around 0.93 today.
The latest US domestic data has come from the Fed, where officials have spoken favourably of implementing a December interest rate hike; the odds currently stand at 90%.
In more concerning US news, the recent appointment of controversial figure Steve Bannon as a key Trump administration official is rumoured to have created division within the Republican’s entourage, with markets worried by claims of a verbal ‘knife fight’ erupting among members of the Trump team.
Future EUR USD Forecast: Eurozone Inflation and ECB Accounts Set to Shift Euro on Thursday
The next Eurozone data to watch out for will arrive tomorrow morning, in the form of October’s inflation rate figures. As it stands, the current forecasts are for a drop from 0.4% to 0.2% on the month, but a finalised annual rise from 0.4% to 0.5%.
In the early afternoon, the ECB monetary policy meeting accounts are expected; investors will be watching keenly for any signs of post-US Election easing plans among policymakers.
For the US Dollar, the next US data of note will be this afternoon’s industrial and manufacturing production figures for October. On the year, these are both forecast to print positively.
Current Interbank Exchange Rates
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.