- Poor Euro Pound US Dollar Levels – EUR GBP and EUR USD both down
- Eurozone PMIs Beat Expectations – But Euro struggles to hold against strong US Dollar
- EUR GBP Forecast: Recovery Fades – Euro lacks support as Sterling bearishness cools
- EUR USD Forecast: Fed Rate Bets Solid – US Dollar has upwards bias until December’s meeting
Euro Pound US Dollar Exchange Rates Hold Ground on Thursday
While the Euro was unable to recover any ground against the Pound on Thursday due to lingering Autumn Statement optimism in GBP trade, the Euro US Dollar exchange rate was able to make and sustain a modest recovery thanks to light US trade.
Thursday’s Euro Pound US Dollar exchange rates continued to reflect the ongoing weakness in Euro trade however, as the shared currency was unable to benefit from Germany’s solid Q3 growth results.
Meeting expectations, German GDP came in at 0.2% quarter-on-quarter and 1.7% year-on-year. Any optimism from this result was likely offset slightly by the IFO’s underwhelming German business climate and expectations results from November.
The Euro’s movement on Friday is likely to be limp. Expected or poor UK growth results could see the Euro strengthen slightly against Sterling, but if Friday’s American session leads to another bout of USD bullishness the Euro will struggle to hold its ground.
(Previously updated 12:47 GMT 24/11/2016)
The Euro Pound US Dollar exchange rates saw comparatively narrow and limp movement on Thursday morning as the weak Euro struggled to recover from Wednesday’s falls.
Both Sterling and the US Dollar were able to hold the shared currency down. EUR GBP attempted to edge higher when European markets opened but lasting optimism following the Autumn Statement helped the Pound to hold its ground.
As for EUR USD, the US Dollar was weakened slightly as US markets were closed to observe the Thanksgiving holiday. This allowed EUR USD to recover slightly and could sustain these gains in quiet trade, but at midday the exchange rate still remained near its lowest levels all year.
(Previously updated 16:41 GMT 23/11/2016)
Euro Pound US Dollar Exchange Rates Weaken as Euro Lacks Driving Support
Despite trending sturdily on Wednesday morning, the Euro Pound exchange rate plunged in the afternoon.
The day’s Euro Pound US Dollar exchange rates generally performed poorly throughout the day as the Eurozone’s preliminary November PMIs failed to offer the shared currency the support it needed to mount a defense.
EUR GBP plummeted to below Monday’s lows as UK markets reacted to a less bearish than feared Autumn Statement, giving Sterling a relief rally and reclaiming most of Tuesday’s GBP losses.
Meanwhile, EUR USD plummeted as the US Dollar was able to easily take down a weak Euro after the day’s preliminary October durable goods orders figures came in above expectations, improving from -0.3% to a solid 4.8%.
(Published 11:59 GMT 23/11/2016)
This week’s Euro Pound US Dollar exchange rates have seen mixed movement despite solid Eurozone ecostats, as underlying factors in the Euro, such as fears of rising populist protectionism, keep the shared currency from holding its ground against the strong US Dollar.
EUR GBP has recovered most of its Monday losses, rebounding from a weekly low of 0.84 to trend comfortably above 0.85. Meanwhile the EUR USD exchange rate continues to fluctuate in a narrow region between opening levels of 1.05 and highs of 1.06.
Euro Pound Exchange Rate Recovers as Autumn Statement Jitters Weaken GBP
The Euro Pound exchange rate plummeted on Monday as traders reacted to a new bout of optimism about the UK’s Brexit process.
UK Prime Minister Theresa May had stated that the government intended to aim for a transitionary Brexit. This would be a period of gradual withdrawal from the European Union and its benefits, easing British businesses from the old economy to the new one.
This Sterling bullishness did not last however. The Pound grew jittery on Tuesday as traders began to grow concerned about the UK’s growing deficit and fears that it would only continue to grow in the coming years.
The Euro initially had difficulty sustaining any gains against the Pound as fears of rising populism in the Eurozone left investors concerned about what could happen to the Euro in the coming year. Instead, the Euro was simply bought up from its cheapest levels after last week’s plunges.
However, the shared currency saw more solid support on Wednesday thanks to the publication of the Eurozone’s preliminary November PMIs from Markit.
Despite Manufacturing and Composite prints coming in below expectations in Germany, November’s private activity indexes impressed in France and the Eurozone as a whole. The Eurozone’s Manufacturing PMI came in at 53.7, Services at 54.1, and the overall Composite measure improved from 53.3 to 54.1, beating expectations of staying at 53.3.
Euro US Dollar Exchange Rate Fluctuates as USD Holds onto Fading Bullishness
The Euro US Dollar exchange rate has fluctuated ever since markets opened for the week, as some investors opt to buy the Euro up from its cheapest levels while others continued to see favour in the recently bullish US Dollar.
While EUR USD has seen an end to the record losing-streak of the last two weeks, it has only edged slightly higher since the weekend and has seen wide fluctuations, regularly falling back towards its weekly lows.
This is largely to do with lingering bullishness in the US Dollar. EUR USD has fallen to its lowest levels in almost a year, but on Tuesday December Federal Reserve rate hike bets briefly hit 100% for the first time ever.
Hopes of short-term stimulus under President-elect Donald Trump’s administration in 2017 have left traders hoping for boosts of US growth and inflation. As a result, even after Fed rate hike bets slipped slightly on Wednesday they remained above 90%.
The number of supporting and upside factors in US Dollar trade have allowed it to easily hold against the Euro.
Euro Pound US Dollar Exchange Rate Forecasts: Underlying Euro Factors Remain Weak
Despite Wednesday’s November Eurozone PMIs beating expectations, the Euro continued to see relatively weak trade compared to the Pound and US Dollar’s recent sharp movements.
This was likely due to concerns that the European Central Bank (ECB) is likely to extend its easing measures in its next meeting on the 8th of December. This, as well as fears of rising populist politics, continue to be significant downside factors in Euro trade.
The Pound, on the other hand, will continue to see investors reacting to Wednesday’s Autumn statement for the coming day as analysts and traders assess the potential short to long-term effects of any new fiscal policy plans.
Meanwhile in an opposite story to the Euro, the US Dollar continues to enjoy many strong upward factors and is likely to continue holding its highs as December’s Fed meeting becomes the most highly anticipated all year.
Euro Pound (EUR GBP) exchange rates traded around 0.85 and Euro US Dollar (EUR USD) exchange rates traded around 1.06 at the time of writing.