Yesterday the Euro experienced modest fluctuations as the Eurozone published a mixed bag of data and Federal Reserve speculation kept currencies trading in a tight range.
This morning the common currency opened the European session softer against both the Pound and US Dollar.
The Euro softened against its British rival as UK house prices climbed, although gains were limited as a separate report showed that UK consumer confidence declined in October.
Meanwhile, a less dovish than forecast statement from the Federal Open Market Committee helped the US Dollar recover losses and saw the EUR/USD pairing decline.
The expectation that today’s US initial jobless claims data will show a decline in applications for unemployment benefit also bolstered the ‘Greenback’ against its European cousin.
As one New York-based foreign strategist notes; ‘The people who were expecting a more dovish statement from the Fed are unwinding their positions. The Dollar was brought back, but whether it can sustain those gains will depend on the economic data.’
The Euro is currently trading against the Pound Sterling in the region of: 0.8548
The Euro was also adversely affecting this morning by some disappointing German news. Firstly the GfK consumer confidence survey unexpectedly declined, dipping from 7.1 to 7.0. Secondly, German retail sales unexpectedly dropped in September, dropping by 0.4 per cent month-on-month rather than gaining by the 0.4 per cent expected.
The result prompted this response from industry expert Nina Adam; ‘It is too early to say what the weaker-than-expected results mean for total private consumption in the third quarter, as retail sales have a share of roughly 25% of private consumption in Germany. This data can also be subject to heavy revisions.’
While the German reports are likely to weigh on the Euro for the next few hours the common currency could experience additional volatility in response to Eurozone employment and inflation data.
US news will also be of interest.
Euro (EUR) Exchange Rates
As of 08:50
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3706 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8548 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4434 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6617 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4348 >