The Euro (EUR) has made a small 0.2% gain against the US Dollar (EUR/USD) today, something likely triggered by optimism for the impending German Unemployment results covering January.
Euro (EUR) Mainly Positive Elsewhere due to Apparent UK-EU Progress
A potential reason for the Euro (EUR) faring well in other pairings is the fact that ostensible progress has been made in the UK-EU Referendum negotiations; this holds the possibility of the UK remaining in the EU due to favourable terms, something that is certain to reassure investors in single currency.
The Euro (EUR) has made a gain of 0.6% against the US Dollar (EUR/USD) today, something brought about by the afternoon’s ISM Manufacturing result for January making an insubstantial rise from 48 to 48.2; a slightly higher 48.4 was forecast.
Afternoon of Disappointment for US Economy Puts March Fed Rate Hike into Question Again
The most recent US economic publications have done little to support the US currency – the ISM Prices Paid figure in January has remained at 33.5 instead of rising to 35 and the December Construction Spending result has only risen from -0.6% to 0.1% instead of the forecast 0.6%.
The Euro (EUR) has made a 0.5% advance against the US Dollar (EUR/USD) today, something mainly due to the most recent development out of the US. The Personal Consumption Expenditure Core result on the year in December has made flat movement at 1.4%, something that has resulted in the US Dollar (USD) trending narrowly against most competitors.
US Manufacturing Score Incoming on Key Day for Global Mfg Stats
In the near future, the EUR/USD pairing is likely to be impacted by the imminent release of the US’s ISM Manufacturing score for January. A rise from 48 to 48.5 has been predicted, but for the US currency to show a real rally against the competition, a breaching of the 50-barrier to show clear growth will be required.
The Euro (EUR) has been rallying against almost all of its peers today, with the exception of the Polish Zloty (EUR/PLN). Against the US Dollar (USD), the single currency has made a gain of 0.4%.
Bleak ‘Brexit’ Predictions Momentarily Countered by Recent UK Welfare Proposal
Going against the recent predictions that have forecast economic disaster in the Eurozone if the UK leaves the EU, the European Commission has lately created a modification of the earlier rejected ‘Emergency Brake’ system that will ideally meet with the UK PM’s approval and allow the finalisation of UK Referendum conditions in the near future.
The Euro to US Dollar (EUR/USD) exchange rate has advanced by a small amount today, with the single currency also recording gains against several of its other main peers. Demand for the US Dollar (USD) has also eased due to worrying Chinese developments.
EUR/USD Exchange Rate News: Euro Gains Despite Mixed Eurozone Data
The Euro (EUR) has recorded gains against a majority of its competitors so far today, with the greater of these including 0.3% against the US Dollar (EUR/USD), 0.9% against the Australian Dollar (EUR/AUD), 1% against the Canadian Dollar (EUR/CAD) and 1.3% against the South African Rand (EUR/ZAR).
Eurozone economic data out this morning has primarily revolved around Manufacturing PMIs for January, which have offered a diverse range of readings. The ‘high-ticket’ German and Eurozone variants have fallen from 53.2 to 52.3, while the less impactful Spanish printing has risen from 53 points to 55.4.
Commenting on the results, Markit Chief Economist Chris Williamson stated: ‘The Eurozone’s Manufacturing economy missed a beat at the start of the year. Having accelerated for three straight months, the rate of growth slipped from the 20-month high attained at the end of 2015. Growth of order books, exports and output all slowed’.
US Dollar (USD) Fluctuates as Chinese Manufacturing Remains in Contraction
The US Dollar (USD) has experienced varied movement today, having made gains of 0.6% against the Canadian Dollar (USD/CAD) and 1% against the South African Rand (USD/ZAR) on the one hand but losses of -0.3% against the Euro (USD/EUR) and -0.4% against the Polish Zloty (USD/PLN) on the other.
The main reason for this is thought to be China’s recent publication of its January Manufacturing PMIs. For both the official and unofficial printings, a sub-50 state of contraction has been recorded and the official 49.4 printing represents the lowest point for the measure since 2012. Additionally, the state of contraction has now been continuing for 6 months.
The impact of this news on the US currency has been negative, mainly because a more unstable situation abroad means that the Federal Open Market Committee (FOMC) is less likely to implement an interest rate hike the next time the decision comes around in March. This appropriate reaction to such negative news represents a change relative to last week’s ending movement.
EUR/USD Exchange Rate Forecast: US Manufacturing Stats, Draghi Speech Due Later
The Euro (EUR) will take the back seat for most of this afternoon, although a late speech by European Central Bank (ECB) President Mario Draghi has the potential to introduce a negative angle into the Euro’s current appeal.
The main economic publications will come from the US, in the form of the nation’s December annual Personal Consumption Expenditure Core as well as the ISM Manufacturing figure. At the time of writing, forecasts were for a rise from 1.3% to 1.4% for the former and a similarly optimistic movement from 48 points to 48.5 for the latter.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0863 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9208 today.