The Euro (EUR) has printed a minor loss against the US Dollar (EUR/USD) today, mainly due to very little taking place over the Eurozone until the evening.
Speeches from ECB and Fed Officials Failed to Generate Movement
Both the Euro (EUR) and the US Dollar (USD) have had the potential to be moved by speeches from their respective central bank officials today, but neither Peter Praet’s nor Stanley Fischer’s comments at the send-off of Banque de France Governor Christian Noyer have had much of a global impact.
The Euro (EUR) has made a small gain against the US Dollar (EUR/USD) today, potentially due to the recent mix of speeches that have come from Federal Reserve officials.
Pros and Cons of Second Fed Interest Rate Hike Laid Out by Officials
The most recent high-impact US events have been speeches from Fed officials Dennis Lockhart and Robert Kaplan; Lockhart has spoken dovishly about not having enough data to go on for a rate hike in January, while Kaplan has emphasised that he was strongly in favour of December’s historic interest rate hike.
The Euro (EUR) has fallen against the US Dollar (EUR/USD) by -0.4% today, mainly due to the day’s US data coming out in strong support of the US currency.
Pessimistic Forecasts Thwarted Today for US Economy
The US Labor Market Conditions Index Change for December was previously forecast to fall from 2.7% to 0.4%, but to the elation of investors, the actual result has shown 2.9 points.
The Euro (EUR) has fallen by a reduced amount against the US Dollar (EUR/USD) today, coming in at -0.2% during the afternoon. This comes after the Eurozone Sentix score for Investor Confidence in January fell from 15.7 to 9.6 and Latvia’s trade deficit made little movement in November from -€143m to -€124.7m.
US Labour Data Out Shortly along with Fed Speeches
As mentioned earlier, the US Dollar (USD) will be affected this afternoon by the speeches of a pair of Fed officials, along with the earlier Labour Market Conditions Index Change, which was forecast to drop from 0.5 to 0 at the time of writing.
The Euro to US Dollar (EUR/USD) exchange rate has been moving against the common currency today and in most other pairings the Euro (EUR) has been showing a clear slump at the start of the week.
EUR/USD Exchange Rate News: Slow Eurozone Recovery Predicted
The Euro (EUR) has been faring poorly at the opening of the week, with sizable declines being recorded against most of the single currency’s major peers. Given that the scant economic coverage for the Euro has only been positive today, this timidity on the part of investors can instead be attributed to a lingering dissatisfaction with Friday’s German data.
Both the annual November Industrial Production and trade surplus fell on previous figures, which sent the common currency into the weekend on a decline. Today, the only news has been that Spain’s annual Industrial Production result for November has risen from 4.1% to 4.2%.
The Euro’s losses today have included -0.3% against the US Dollar (EUR/USD), -0.4% against the New Zealand Dollar (EUR/NZD) and more than -0.5% against the Indian Rupee (EUR/INR), the Australian Dollar (EUR/AUD) and the Pound Sterling (EUR/GBP). The common currency has also advanced by 1.2% against the South African Rand (EUR/ZAR). For investors in the single currency, these results are an unfortunate echo of the Euro’s performance at the end of last week.
US Dollar (USD) on the Up as Payrolls Data Continues to Encourage Investors
The US Dollar (USD) has made an opposite performance to the Euro (USD/EUR) today, having made gains against all but a few of its usual rivals. This has come despite the currently immense volatility of the Chinese economy, the fluctuations of which have a distinct impact on the Fed’s choices regarding the US interest rate.
With no direct data to refer to yet today, investors in the ‘Greenback’ have instead had to remember Friday’s extremely positive Change in Non-Farm Payrolls figure for December, which printed a sizable improvement from a previous 252k to 292k.
The US Dollar has advanced by 0.4% against the Euro (USD/EUR) today and also posted a rise of 1.3% against the South African Rand (USD/ZAR).
EUR/USD Exchange Rate Forecast: Slim Pickings Ahead: Latvian Trade Balance, Duo of Fed Speeches
The Euro (EUR) will be the first currency in the pairing to receive input from domestic data today, with the Latvian Balance of Trade for November scheduled to come out shortly. At the time of writing, forecasts were for a worsening of the current deficit from -€88.7m to -€143m.
On the US side, the most impactful events today are likely to be the later speeches from Fed officials Dennis Lockhart and Robert Kaplan on US economic outlook and monetary policy, respectively.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0888 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9188 today.