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Euro US Dollar Exchange Rate Trending Tight despite German Business Confidence Boost

The Euro US Dollar exchange rate has been trending closely so far today, though Germany has posted better-than-expected confidence results.

  • EUR USD trades at 1.04 – USD EUR rate at 0.95
  • Euro demand supported by rising German Ifo scores – Estimates exceeded in most cases
  • US Dollar appeal limited on Chinese comments – President-Elect Trump criticised by state media
  • Eurozone confidence flash due Wednesday – Declines forecast for incoming US PMIs

The US Dollar has fluctuated during overall trading, with further signs of a rift with China raising concerns for future US diplomacy.

Euro Exchange Rate News: Rising German Confidence Provides Temporary Advance for EUR

The Euro US Dollar exchange rate has been trending tightly during trading today, owing to recent positive Eurozone news only having a limited positive effect on the single currency.

This has come from Germany, covering Ifo expectations, current conditions and the business climate in December.

In all cases, figures have risen, though only current conditions and business climate stats have beaten forecasts.

Other Eurozone data today has shown October construction output and Q3 wage growth rise, beating forecasts in both cases.

Given that most of the day’s Eurozone news has been positive, it is possible that underlying concerns about another flaring up of the Greek debt crisis are keeping investors wary of piling into the Euro at the present time.

US Dollar Euro Exchange Rate Unsettled by Chinese Critique of Trump Presidency

US Dollar Euro exchange rates have been trending closely, on account of low confidence in USD.

The latest US news has been negative, focusing on international perceptions of President-Elect Donald Trump.

In the aftermath of an apparently resolved incident involving a confiscated US naval drone by the Chinese navy, Chinese state-controlled newspaper Global Times stated that;

‘Trump is not behaving as a president who will become master of the White House in a month. He bears no sense of how to lead a superpower’.

Trump had petulantly declared that China could keep the drone, and had also previously inflamed US-China tensions by contacting the head of Taiwan, a contentious territory that is nominally claimed by China.

The incident points to another degradation of relations between the two major nations and bodes poorly given that Trump is still not even officially the President.

US money

Future EUR USD Forecast: Improvement Forecast for EZ Confidence Flash This Week

The Euro US Dollar exchange rate has the potential to advance further this week, given the latest expectations for mid-week Eurozone data.

Coming on Wednesday afternoon, this will cover the consumer confidence flash for December, and is expected to show an improvement in the figure from -6.1 to -5.6.

The next US news of the week will arrive much earlier, consisting of this afternoon’s Markit composite and services PMIs for December. In their preliminary ‘flash’ forms, both fields are expected to fall, which could weaken USD EUR demand.

Current Interbank Exchange Rates

The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.04 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.95 today.