EUR/USD Exchange Rate Gives up Daily Gains after Strong US Data
Earlier today, the Euro to US Dollar (EUR/USD) exchange rate was mounting an advance on the back of stronger than expected Eurozone data. However, today’s US data has also impressed investors, leading to jittery movement in the pair.
Last week’s EUR/USD movement was bullish, climbing from the level of 1.2047 to 1.2120. This week so far the pair has been unable to maintain that upside trend however.
EUR/USD touched on a February high of 1.2166 at around noon, but the pair has been tumbling back from those highs since. As of the time of writing EUR/USD has shed all its weekly gains and is trending lower in the region of 1.2101.
More key Eurozone and US data will influence the Euro and US Dollar in the coming sessions. Of course, coronavirus recovery optimism may limit demand for the safe haven US Dollar (USD) as well.
Euro (EUR) Exchange Rates Find Support in Eurozone Data
Today’s European session saw the publication of a batch of fairly noteworthy Eurozone data. As every notable print beat forecasts, the Euro saw stronger demand following the stats.
Eurozone employment change, economic sentiment stats from ZEW and growth rate results all came in well better than expected.
US Dollar (USD) Exchange Rates Rebound Following Strong US Manufacturing Stats
The US Dollar had seen weak performance for much of the past week.
Rising global confidence over coronavirus recovery dampened safe haven demand. On top of this, the safe haven US Dollar was weighed by market uncertainty over the health of the US economy.
As a result though, today’s much stronger than expected US manufacturing data from Empire helped boost confidence in the US economic outlook slightly.
This helped the US Dollar to mount another rebound against rivals, pushing EUR/USD lower today.
Euro to US Dollar (EUR/USD) Exchange Rate Could Fall Further on More Strong US Data
Safe haven demand is lower as global coronavirus recovery hopes strengthen, but the US Dollar is also being weighed by US economic uncertainty.
This means that if upcoming US data continues to impress investors, the US Dollar is more likely to mount a sustained rebound and push the Euro to US Dollar exchange rate lower.
Tomorrow could be one of the most influential days of the week for the US Dollar.
US retail sales results could support the US Dollar considerably if they beat forecasts. A less dovish than expected Federal Reserve meeting minutes report would also be a positive for USD.
On the other hand though, if the Federal Reserve shows any signs of becoming more dovish, the US Dollar’s weak streak may be set to continue instead.
US retail and Fed news will likely drive the Euro to US Dollar (EUR/USD) exchange rate until later in the week, when Eurozone PMI projections will be published.