The Euro (EUR) has advanced by 0.4% against the US Dollar (EUR/USD) today; this has been brought about by the German Unemployment Change and CPIs for the day both coming out positive for the common currency.
Eurozone Side of German Stats due Tomorrow along with US Income Results
The next data likely to have an impact on the EUR/USD exchange rate will be tomorrow’s Eurozone CPI Core and Estimate results, which have both been forecast positively. Along with this will be the rise from 10.9% to 11%-predicted Eurozone September Unemployment Rate and the US University of Michigan Confidence result for October, which is expected to rise slightly from 92.1 to 92.5.
The Euro (EUR) has risen by 0.3% against the US Dollar (EUR/USD) today, despite the major Eurozone results of the day printing unfavourably.
Fed Pessimism has Rate Hike as Low Probability, EUR/USD Rally Likely
The most high-impact data due to affect the EUR/USD pairing in the future is the Federal Open Market Committee (FOMC) Interest Rate Decision, although at the time of writing, forecasts for a rate hike were lower than 5% according to some economists.
The Euro to US Dollar (EUR/USD) exchange rate has risen steadily today, although the single currency has recorded far more notable gains elsewhere. This comes in spite of the Eurozone’s only major data today coming out negatively.
EUR/USD Exchange Rate News: Poor Eurozone Data causes Euro Rally as ECB Steps up QE Plans
The Euro (EUR) has risen by 0.2% against the US Dollar (EUR/USD) today and made more significant gains against other rivals; these have been made up of 0.3% against the Pound Sterling (EUR/GBP), 0.9% against the US Dollar (EUR/USD) and 1.2% against the Australian Dollar (EUR/AUD).
The Euro’s rise today comes despite most of the major Eurozone results of the day coming out unfavourably for the common currency. These have included a (predicted) drop in the German Gfk Consumer Confidence Survey for November to 9.4 points from 9.6 and a decline in the German Import Price Indices by -0.7% on the month for September and -4% on the year. Adding to these woes has been the declining French Consumer Confidence for October, although Italy’s Business and Consumer Confidence results for October have actually risen on previous postings.
The news has sparked yet more fears that the European Central Bank (ECB) will institute further quantitative easing (QE) given that ECB President Mario Draghi previously announced that a review will take place in December. With today’s news seemingly indicating that the scheme will be extended, the Euro’s current rally can be attributed to the fact that while damaging to the value of the Euro initially, further QE would ultimately benefit the Eurozone economy.
US Dollar Experiences General Decline due to FOMC Anxieties Today
The US Dollar (USD) has had a mixed showing today, although on the whole the ‘Buck’ has slid against the competition. Exceptions to this have been rises of 0.5% against the Norwegian Krone (USD/NOK) and 0.7% against the New Zealand Dollar (USD/NZD), while making up the majority losses have been more than -0.2% against the Euro (USD/EUR), the Canadian Dollar (EUR/CAD) and the Swiss Franc (USD/CHF), along with a -0.6% decline against the South African Rand (USD/ZAR).
With no US data out yet today, investors have been forced to rely on yesterday’s negative Consumer Confidence result for October, along with the -1.2% printing for the Durable Goods Orders in September.
EUR/USD Exchange Rate Forecast: US Goods Order to Provide Starter before Later Fed Decision
No Eurozone releases of note are due for the rest of the day and while the all-important Federal Open Market Committee (FOMC) Interest Rate Decision is due this evening, preceding it will be the US Advance Goods Trade Balance for September. As of writing, no change from 0.25% was forecast for the Fed’s decision, while a small reduction in the deficit for the Trade figure had been predicted.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1066 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9040 today.