The Euro to US Dollar (EUR/USD) exchange rate has risen considerably today, and the Euro has also seen significant gains against a majority of the other competition currencies.
Euro to US Dollar (EUR/USD) Exchange Rate News: Positive Eurozone CPI Data Triggers Rally
The Euro (EUR) experienced a sudden uptrend today after the annual Eurozone Consumer Price Index (CPI) for July came in with a 0.2% increase from June; this brought inflation up to 1%. Although the European Central Bank (ECB) aims for a rate of ‘below, but close to, 2%’, today’s results are a step in the right direction, and have seen the Euro rally against the South African Rand (EUR/ZAR) and the Australian Dollar (EUR/AUD) by over 0.8%, and increase further against the New Zealand Dollar (EUR/NZD), where the Euro gained 1.3%.
The Euro also gained against the US Dollar (EUR/USD) by 0.4%; the only losses for the common currency were against the Swiss Franc (EUR/CHF), by -0.3%.
US Dollar to Euro (USD/EUR) Exchange Rate currently Unfavourable, Gains elsewhere for ‘Greenback’ (USD)
While the US Dollar to Euro (USD/EUR) exchange rate has fallen by -0.4% today, the performance of the ‘Greenback’ elsewhere has been improved. This is thanks to highly optimistic hints from the Federal Open Market Committee (FOMC) on Wednesday that the US interest rate may be raised as early as September, given the strong (and stable) recovery of the US economy.
The US Dollar (USD) has risen against the Australian Dollar (USD/AUD) by 0.6%, and gained further against the New Zealand Dollar (USD/NZD) by 0.9%. As with the Euro (EUR), the US Dollar has fallen against the Swiss Franc (USD/CHF) today, by -0.7%.
Euro to US Dollar (EUR/USD) Exchange Rate Forecast: ‘Greenback’ may bounce back following US Growth Data and Greek Upsets
Although the US Dollar (USD) has put on a less than ideal performance against the Euro (EUR) today, next week seems set to upset the current decline of the ‘Greenback’ against the common currency. The release of the US July Unemployment Rate and Change in Non-Farm Payrolls on Friday are key indicators of improvement in the US economy; the unemployment rate is expected to remain at 5.3%, but an increase in non-farm payrolls of 225K will likely bolster the US Dollar’s performance over a stable (and low) unemployment rate.
The Euro (EUR) will also be affected by data next week; the Eurozone Retail Sales and PMIs for June and July being at the top of the list. Increases in these figures would strengthen the Euro considerably, although another week of Greek bailout negotiations also presents the possibility of another week of wild fluctuations for the common currency, should any surprises arise from the ongoing talks.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0979 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9114 today.