The Euro (EUR) has fallen into a -0.2% decline against the US Dollar (EUR/USD) today, owing mostly to the lack of Eurozone support offered by today’s data releases.
US Dollar to Lead EUR/USD Pairing Once Again this Afternoon
The Euro (EUR) has lost out this morning due to the Eurozone Manufacturing PMIs for September not meeting entirely with expectations. While speeches over the last day from Fed officials have taken place, speakers have not mentioned a US interest rate hike, although this can be attributed to the fact that the talks were not intended to revolve around FOMC decisions.
Later on today, the first of the US results, the Challenger Job Cuts figures, will come in as the first of many ‘Buck’-centric (USD) results.
The Euro to US Dollar (EUR/USD) exchange rate has declined today after the release of the Eurozone’s biggest news of the week, which saw the Eurozone base inflation rate drop into the negative.
EUR/USD Exchange Rate News: Disheartening German Data and Eurozone Unemployment Soften the Euro Massively
The Euro (EUR) has fallen by -0.2% against the US Dollar (EUR/USD) today, just one of a number of losses for the single currency. Elsewhere, the Euro has lost by -0.5% against the Australian Dollar (EUR/AUD), the Indian Rupee (EUR/INR) and the New Zealand Dollar (EUR/NZD). The greatest loss so far has been by -1.3% against the South African Rand (EUR/ZAR).
Euro speculators have been particularly disappointed today by the news that the number of German Unemployed rose by 2k in September, along with the Eurozone Unemployment Rate failing to fall from 11% to 10.9% as predicted. In addition, the Eurozone CPI Estimate for September saw a drop from 0.1% to -0.1%, spurring further fears of European Central Bank (ECB) quantitative easing measures being used in the future.
Despite Rising Consumer Confidence, USD/EUR Remains in Question as Billionaire Icahn Gives Bleak Warnings
The US Dollar (USD) has risen by 0.3% against the Euro (USD/EUR) today, although elsewhere the ‘Greenback’ has hit a number of lows, particularly by -0.3 against the Norwegian Krone (USD/NOK), -0.4% against the New Zealand Dollar (USD/NZD) and by -1.2% against the South African Rand (USD/ZAR). Notable gains have been by 0.3% against the Japanese Yen (USD/JPY) and 0.4% against the Polish Zloty (USD/PLN).
The US Dollar’s most recent piece of data, the Consumer Confidence score for September, defied pessimistic expectations to rise to 103 points instead of falling from 101.3 to 97. Despite this unexpected support for the ‘Buck’, however, the US Dollar was diminished yesterday by the thoughts of billionaire investor Carl Icahn, who used his influence to express concerns over the future of the US economy regarding what he perceived as excessively-high corporate taxes, low interest rates and the high-risk options offered by stock markets.
EUR/USD Exchange Rate Forecast: US Mortgages Figures and Employment Data in Focus
The future of the EUR/USD pairing will be decided by the imminent US Mortgage Applications figure for the week ending September 25th and the ADP Employment Change report for September. No forecasts have been made for the former report, but a 190k person increase in the number of employed persons has been predicted. Later on, speeches from Fed Chair Janet Yellen and Fed Bank of St. Louis President James Bullard are due, but it is worth remembering that only Yellen is voting on interest rates this year; Bullard is an alternate FOMC member.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1224 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8913 today.