The Euro US Dollar exchange rate has been trading in a tight range today ahead of what may prove a historic weekend for the European Union.
- EUR USD rate holding 1.06 – USD EUR pairing edges up to 0.93
- Euro soft before weekend’s EU votes – Spanish unemployment rises against forecasts
- US Dollar drops after Trump’s corporate claim – Uncertain future for US globalisation under Trump administration
- EUR volatility likely on AT and IT votes – US Dollar gains possible on incoming payrolls stats
While the US Dollar has been able to capitalise on oil prices recently, the most recent drop in USD support comes from fresh concerning comments from President-Elect Trump.
Euro Exchange Rate News: Low Interest in EUR on Voting Fears
The Euro has been negative in most currency pairings today, with a minor dip in the Euro US Dollar (EUR USD) exchange rate being one of the currency’s better performances.
The latest domestic data has been limited and disappointing, with Spain posting a rise in unemployment in November of 24.84k persons.
The overriding influencers on the Euro today have been the impending Austrian and Italian votes, which could see a rise of more Eurosceptic parties in the EU in the short and long-term respectively.
US Dollar Euro (USD EUR) Rate Tight after Trump Returns to Campaign-Style Comments
US Dollar Euro movement has been extremely limited during trading today, with the pairing hovering at 0.93.
This comparative drop in USD demand after previous oil-based gains has been linked to Donald Trump’s latest public speeches.
While taking part in a ‘Thank You’ tour for his election win, Trump has stated that he plans to financially punish companies that attempt to take their business out of the US. This tone is reminiscent of his wild campaigning claims and harsh rhetoric, marking a concerning step forward for the US.
Future EUR USD Forecast: Eurozone Voting Anxiety Likely to Limit Further Euro Gains
The remainder of Friday’s European trading session is not expected to see any real positive movement in the EUR USD pairing, on account of the high-impact votes that are due on the weekend.
Both are due on Sunday; in Austria’s case, recent opinion polls have made the vote between the two Eurosceptic and Europhile candidates too close to call.
With the Italian Constitutional Referendum, however, it seems more likely that a majority will vote ‘No’, which is expected to see Italian Prime Minister Matteo Renzi resign.
This could trigger a general election in 2017, which would put the country at risk of being run by a more isolationist party. This could, in turn, put further strain on the already-stretched European project.
US news is more imminent, with the November non-farm payrolls result expected to show a rise this afternoon of 180k jobs. Despite this, however, unemployment is set to stay at 4.9%.
Current Interbank Exchange Rates
The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.06 and the US Dollar Euro (USD EUR)) exchange rate was trending in the region of 0.93 today.