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Euro (EUR) Exchange Rate Drops Off against US Dollar (USD) as ECB’s Draghi Warns of Eurozone Damage

  • Central bank President lowers appeal of single currency – More than monetary policy needed, says Draghi
  • German trade stats similarly harmful – Surpluses fall in April
  • US Dollar strong overall on mortgage stat – Significant climb recorded for June period
  • ECB speeches incoming – US claims data also due out today

The Euro has been notably mixed against its peers of late, with movement mainly coming from recent comments given from European Central Bank (ECB) President Mario Draghi.

The US Dollar, by contrast, has been making relatively stable movements against its peers, with the most notable source of support being prior mortgage data.

Eurozone Economic News: Draghi Comments on Risks to Eurozone, Concerning Investors

In a recurrent trend, ECB President Mario Draghi has unfortunately managed to limit the appeal of the Euro once again through identifying the current risks posed to the stability of the Eurozone.

Speaking earlier today, the policymaker said:

‘Employment growth [is likely] to decelerate in the not-too-distant future because of the fall in the working age population. Even migration is unlikely to fully offset this natural population decline. There are many political reasons to delay structural reforms, but very few economic ones and the cost of delay is too high’.

Elsewhere in the single currency bloc, Germany has posted disappointing trade balance results, with the April trade balance and current account surpluses both dipping.

Euro movements of note have included losses of -0.2% against the US Dollar (EUR/USD) and -0.6% against the Japanese Yen (EUR/JPY), although gains of 0.4% against the South African Rand (EUR/ZAR) and the Australian Dollar (EUR/AUD) have also been recorded.

US Dollar Stable after Prior Support Offered by Mortgage Data

Although yesterday brought a fairly limited spread of data from the US, the notable announcements that were made provided a great deal of support.

These printings consisted mainly of the MBA mortgage applications up to June 3rd and the JOLTS job openings for April; in the former case, a rise from -4.1% to 9.3% was recorded while in the latter there was an increase from 5670 to 5788.

US Dollar gains recorded today have included 0.4% against the Euro (USD/EUR), 0.8% against the Norwegian Krone (USD/NOK) and 0.9% against the South African Rand (USD/ZAR).

Euro Exchange Rates Today

Future EUR, USD Forecast: ECB Officials due to Speak, US Claims Printings Out Shortly

The next notable development out of the Eurozone will consist of comments from ECB officials Francois Villeroy de Galhau and Klaus Regling, while from the US, influence on the US Dollar is expected to come from the late May and early June claims stats, which are expected to shift slightly from their present positions.

Current EUR, USD Exchange Rates

The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1359 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8806 today.