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Euro Trims Losses against US Dollar after ECB’s Mersch Praises Central Bank Policies

Euro US Dollar currency forecast

  • Euro remains mixed after contrasting French inflation – Support offered by ECB official
  • US Dollar remains stable despite falling index result – Fed’s Kashkari issued neutral statement yesterday
  • EUR USD exchange rate forecast – Eurozone industrial production stats and US Fed speeches incoming

The Euro has opened trading in a marginally better position today compared to yesterday, though mainly on account of signs of concern among US Dollar investors.

Eurozone data so far has focused on French inflation in September, which has fallen on the month but risen on the year. Elsewhere, yesterday brought comments from

European Central Bank official Yves Mersch, who stated that without ECB policies, the Eurozone economy would be weaker overall.

The US Dollar has conversely lost a number of its gains since yesterday, owing to the result of the Fed labour market conditions index for September, which has fallen from -1.3 to -2.2 instead of rising.

In other US news, Fed official Neel Kashkari said yesterday that Fed focus should be shifted onto job creation and steady, controlled inflation.

This afternoon will bring speeches from Fed officials William Dudley and Esther George.

(Last updated October 12th, 2016)

For the US Dollar, gains have been granted by signs that Hillary Clinton could win the US election, as well as positive words from a Fed official.

Euro Exchange Rate News: Single Currency Unsettled by Mentions of Greek Debt Crisis

The Euro has had an unusual day of trading so far, having dipped against a number of its peers in the wake of seemingly positive domestic data.

The good news in question has concerned ZEW economic sentiment indexes for October, which have risen for both the Eurozone and Germany.

Less supportively, however, has been mention of the Greek debt crisis. While the news has been good, covering how the next amount of bailout funding has been granted to Greece, any mention of the beleaguered nation appears to have a negative effect on investor engagement with the Euro overall.

US Dollar Gains Recorded as Clinton’s Chances of Victory Increase

The US Dollar has found itself in high demand during today’s European trading session, thanks to the weekend’s debate between Donald Trump and Hillary Clinton putting the latter in a more favourable light.

This in turn has lowered the chances of a Trump presidency, which has encouraged investors who were fearing an unstable US economy in the wake of the November 8th election.

Elsewhere, Fed official Charles Evans gave a neutral statement, indicating that his focus is more on US inflation rates than interest rates. On the topic of a possible rate hike this year, Evans said;

‘One move isn’t that big of a deal either way. Even though I would like to wait and gather more information and have more confidence about inflation, I think one move would not seriously affect the continuing likelihood that inflation will move up’.

exchange rates

Future EUR USD Forecast: Positive Predictions Made for Tomorrow’s Eurozone Industrial Stats

The next Eurozone data to watch out for will arrive tomorrow morning, when the August monthly and annual industrial production results come in.

At the time of writing, forecasts were for a rise from -0.5% to 0.2% on the year and an ‘improvement’ from -1.1% to -0.6% on the month.

The next notable US data will arrive shortly, when the Fed labour market conditions index for September is announced. This has a rise from -0.7 to 1.5 forecast.

Current Interbank Exchange Rates

The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.10 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.90 today.