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Euro US Dollar Exchange Rate Tight after US Budget Statement Slide

  • EUR USD rate close to 1.09 – USD EUR nears 0.92
  • Overall gains come with ECB optimism – Constancio forecasts 2017 unemployment under 10%
  • US Dollar still bullish after Trump news – Hopes of stable President boost USD appeal

The Euro has been able to level off against the US Dollar so far today, following on from a disappointing result for the US’s monthly budget statement.

This saw a slide in October from 33bn to -44bn, a worse-than-expected figure.

Looking ahead, the US University of Michigan consumer sentiment result is due this afternoon; a rise of over 3 points has been forecast.

(Last updated 08:45 November 11th, 2016)

The US Dollar closed trading on Thursday in an extremely strong position overall, though against the Euro it trended tightly.

Euro Exchange Rate News: Thursday’s Closing Strength for Euro Sourced from ECB Positivity

The Euro closed down against the US Dollar at 1.08 on Thursday, but was elsewhere in high overall demand.

The single currency’s greatest supporter on another slow data day was European Central Bank (ECB) official Vitor Constancio. Although investors feared immediate talk of policy easing in the wake of a Trump Election win, Constancio instead ignored this factor, stating that;

‘I feel confident that the recovery in the Euro area will continue. It will consolidate itself…so by next year we will see the unemployment rate in single digits’.

US Dollar Rally seen after Signs of Rapid Republican Acceptance of Trump Election Victory

Having been put through the mill over the past few days, the US Dollar was able to close off trading on Thursday in a strong position against the Euro at 0.3%.

Most of the USD’s other pairings were also extremely positive; this was attributed to a ‘Trump bump’ of investor optimism being caused by a series of recent developments.

In addition to Trump taking the tack of unity instead of divisiveness when accepting victory, investors were also cheered by the idea that previous Republican objectors will fall silent.

Among those supporting the latter theory was Columbia Threadneedle Investments Global Head of Fixed Income Jim Cielinski, who said;

‘There was much dissent even within the party, but a “clean-sweep” soothes the wounds. Republicans have a once-in-a-career chance to enact their full agenda will little opposition. If infighting spoils those odds, heads will roll’.

US money

Future EUR USD Forecast: US in Focus Today on Possible Trump Input

With no real high-impact Eurozone announcements due today, the rest of Friday’s Euro-US Dollar movement is expected to come from the US.

Outside of any surprise announcements from (or about) President-Elect Donald Trump, the US Dollar could also be moved against the Euro by the afternoon’s University of Michigan consumer sentiment figure for November.

Covering the preliminary figure, a respectable rise from 87.2 to 90.3 is predicted.

Current Interbank Exchange Rates

At the time of writing, the Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.08 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.91.