The Euro has fallen to a session low against the US Dollar on Tuesday after a combination of European and US data weakened the single currency.
Early on Tuesday consumer confidence data out of France showed that confidence in the country fell to its joint lowest level since the 1980’s. Rising unemployment as a result of the nations slide back into recession has caused more people to withhold their spending as they fear over their employment prospects. As a result of the negative news the Euro weakened and remained soft until the release of US data.
The single currency then fell to a fresh weekly low against the US Dollar and softened against the Pound as traders flocked to the safe haven of the Dollar. Demand for the US currency surged once more after consumer confidence for the States took economists by surprise by leaping to a five-year high in May. Confidence in the US economy has been bolstered by a better outlook for business and hiring opportunities.
The confidence index rose to 76.2, the highest reading since February 2008.
“At a time when the rest of the world’s economies are on shaky ground, U.S. economic data continues to surprise to the upside, making the dollar extremely attractive to global investors,” Kathy Lien managing director of foreign exchange at BK Asset Management. “As U.S. economic data continues to improve, expectations for tapering asset purchases by the Fed will continue to build.”
As speculation rises over a potential Fed slowdown, we can expect the Euro to weaken further against the ‘Greenback’.
The next big mover for the Euro will be Thursday’s consumer confidence data for the whole Eurozone. Economists are expecting the figure to decline for a second consecutive month to -22.3. If the data shows a sign of improvement then the Euro is likely to find some support, if however, the data is worse than we can expect to see the single currency take a further tumble against the Dollar.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.2865
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8549
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3351
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.5911
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7773
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1702
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7496
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6284
(Correct as of 16:30pm GMT)
