The Euro to US Dollar (EUR/USD) exchange rate has fallen today, as uncertainty has once again surfaced over the viability and sustainability of the Greek bailout.
Euro (EUR) Softens ahead of Tomorrow’s Meeting in Brussels, ‘Greenback’ (USD) Returns to Form with Positive Performance
The Euro (EUR) has fallen by -0.4% against the US Dollar (EUR/USD) today in a sudden reversal of fortunes for the common currency. Although the Euro has enjoyed a bullish uptrend since Tuesday, today, one day before the Greek bailout talks are planned to conclude in Brussels, the Euro has softened overall. This loss of confidence has come from concerns over whether the ‘final’ meeting tomorrow will actually be final.
It’s worth remembering that at the start of the week, the Greek government had predicted that an agreement would be reach on Monday or Tuesday; this estimate then moved to Thursday night or Friday morning. Now, with a scheduled meeting tomorrow afternoon, any form of immediate closure on the Greek bailout negotiations has once again been thrown into doubt.
The US Dollar (USD), by contrast, has strengthened overall, as the prospect of an unstable Euro has increased demand for the safe-haven currency once again.
The Euro to US Dollar (EUR/USD) exchange rate has risen considerably since yesterday, as confidence in the Euro continues to grow across the week.
Euro (EUR) sees Bullish Uptrend against ‘Greenback’ and other Rivals
The Euro to US Dollar (EUR/USD) exchange rate has risen by 0.8% today as news came from Greece that bailout negotiations may be concluded on Thursday night. The Greek government had previously issued statements placing the closure of the deal on Wednesday or Thursday, but today’s confirmation has solidified confidence in the future of Greece within the Eurozone. The common currency was supported further by a 1.2% growth in the Eurozone year-on-year (YoY) Industrial Production figure for June, which although below forecast and previous results, was still indicative of expansion within the Eurozone industries.
The Euro gained by over 1.1% against the Australian Dollar (EUR/AUD) and the South African Rand (EUR/ZAR) today, and made its greatest gain with a 1.7% rise against the Indian Rupee (EUR/INR).
The Euro to US Dollar (EUR/USD) exchange rate has risen slightly ahead of a possible closing of the Greek bailout negotiations this week.
Euro to US Dollar (EUR/USD) Exchange Rate News: Euro (EUR) advances against ‘Greenback’ (USD) while Greek Optimism Boosts Euro Elsewhere
The Euro (EUR) has gained slightly by 0.2% against the US Dollar (EUR/USD) today, after news came this morning that Greece’s bailout negotiations may be concluded within the next few days. The news has restored a considerable amount of confidence in the Euro; this was evidenced by the disappointing German ZEW Survey of Economic Sentiment for August, which showed a -6.9 point difference between the actual result and the forecast figure. The results failed to dampen optimism in the common currency and it continued on the uptrend that was established earlier.
The Euro has gained by over 0.8% against the Indian Rupee (EUR/INR) and the South African Rand (EUR/ZAR) and has seen a larger increase of 1.2% against the New Zealand Dollar (EUR/NZD). The greatest rise has been against the Australian Dollar (EUR/AUD), by 1.4%.
US Dollar to Euro (USD/EUR) Exchange Rate sees Slight Decline; Major Gains Elsewhere for ‘Greenback’ (USD)
The US Dollar (USD) has fallen slightly against the Euro (USD/EUR) today, although favourable circumstances elsewhere have seen the ‘Greenback’ rise bullishly. The US Dollar has risen against the South African Rand (USD/ZAR) by 0.6%, has seen a 0.8% gain against the Indian Rupee (USD/INR) and has advanced against the New Zealand Dollar (USD/NZD) by 1%. The most significant gain today has been a 1.3% increase against the Australian Dollar (USD/AUD).
The greatest contributor to the Dollar’s performance today was the Chinese Yuan (CNY); following the poor performance of the Chinese economy, the People’s Bank of China (PBoC) lowered the value of the Yuan by almost -2%. This led to a drop off in demand for higher-risk and emerging-market currencies, a development which bolstered the appeal of the US Dollar. Continuing speculation over a Federal Reserve interest rate hike also put the US Dollar into a major uptrend against its rivals.
Euro to US Dollar Exchange Rate Forecast: Equal Match ahead as EUR/USD may be strengthened by Clear Greek Conclusion
The possibility is in place for both the Euro and the US Dollar to gain this week, although average data results for the US and the Eurozone could see the indecisive current exchange rate continue throughout the week. The Euro (EUR) is sure to be strengthened if an agreement can be reached in Greece this week and the German and Eurozone Q2 GDP data figures on Friday will support this growth in confidence if they meet with the optimistic forecasts.
The US Dollar (USD) will likely gain substantially if the Advance Retail Sales result for July (due on Thursday) comes in with a major positive and the signs of optimism in the University of Michigan Confidence figure for August (announced on Friday) will support any immediate gains felt by the ‘Greenback’ against the Euro (USD/EUR).
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1038 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9063 today.