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Euro to US Dollar (EUR/US Dollar) Exchange Rate Edges Away from Eight-Month High Ahead of ECB

Euros

Although disappointing German employment and manufacturing figures weighed slightly on the Euro yesterday, the common currency was able to surge to an eight-month high against its US counterpart as Eurozone unemployment data surprised to the upside and US political woes weakened the ‘Greenback’.

However, as the European session opened the Euro edged away from yesterday’s highs as investors braced themselves for the European Central Bank rate decision. This ECB policy meeting will be the first since President Mario Draghi intimated that he is prepared to give the currency bloc’s banking system a cash injection.

The Euro/US Dollar pairing is currently trading in the region of 1.3511

Before the rate decision currency strategists for BNP Paribas SA commented; ‘Recent comments from ECB President Draghi and other policy makers suggest they are still cautious on the recovery, while the tightening in money market conditions remains an on-going concern. A new factor for the ECB to consider is the exchange rate, which has strengthened since the last meeting.’

The Euro also faced pressure from Italian political concerns, as Prime Minister Enrico Letta prepares for a confidence vote.

Additional EUR/USD declines occurred as the American asset strengthened ahead of the publication of this week’s US non-farms payrolls data. While the upcoming debt ceiling deadline and the partial federal shutdown are major US issues at the moment, a strong payrolls report is likely to cause resurgence in stimulus tapering speculation, which could also impact the Euro/US Dollar relationship in the days ahead.

The Euro is likely to experience a volatile day, but with Eurozone and German services PMI and Eurozone retail sales figures both out tomorrow, even more Euro fluctuations can be expected.

Euro (EUR) Exchange Rates

As of 09:00

The Euro/US Dollar Exchange Rate is currently in the region of: 1.3511 <

The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8350 <

The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4456 >

The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6448 >

The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3981 >