The Euro (EUR) has made a major -0.7% slip against the US Dollar (EUR/USD) today following the revelation that Eurozone inflation rates in December had merely reprinted instead of rising as had been forecast.
US ISM Figures due This Afternoon ahead of Eurozone PMIs Tomorrow Morning
The US Dollar (USD) is likely to be shifted in the near future by the release of the ISM New York results for December, although it is worth bearing in mind that this release has been classified as ‘low impact’.
The Euro (EUR) has fallen by -0.3% against the US Dollar (EUR/USD) today, possibly due to investor disappointment over Germany’s seasonally adjusted December Unemployment Rate, which has made no change from 6.3%.
Eurozone Inflation Reports due in Near Future, Optimism Prevalent
The next results likely to generate movement within the pairing will be the imminent Eurozone Core and Estimated Consumer Price Indexes for December, which at the time of writing were both expected to rise on previous figures.
The Euro (EUR) has fallen by -0.6% against the US Dollar (EUR/USD) today, something of an unusual development given the circumstances. The ISM Manufacturing result for December has fallen from 48.6 to 48.2, while November Construction Prices have similarly dropped from 0.3% to -0.4%. Despite this, the ‘Greenback’ (USD) has nonetheless rallied against its rivals.
Fed’s Williams’ Speech due Tonight ahead of German Retail Figures Tomorrow
The next event to impact the pairing will come from the US, with Fed official John Williams delivering a speech on Macroprudential Policy Implementation tonight. Looking further ahead, German outlets will release the nation’s Retail Sales and Unemployment figures for November and December respectively tomorrow morning.
The Euro (EUR) has fallen marginally against the US Dollar (EUR/USD) since earlier today, although is still trending favourably in the region of 0.5%. The most recent Eurozone announcements have been Latvia’s Industrial Production results for November, which have supportively risen on the month and the year.
US Dollar (USD) likely to Rise Along with Manufacturing Result, though Chinese Situation remains a Hindrance
The US Dollar (USD) will dictate the movement of the EUR/USD pairing for the rest of the day, with the impending ISM Manufacturing result likely to cause a majority of this movement. However, China’s recent Manufacturing shortfall has harmed investor expectations of the Asian superpower’s economy, therefore the US Dollar may not uptrend strongly today, even with beneficial data.
The Euro to US Dollar (EUR/USD) exchange rate has risen greatly this morning, thanks to expectation-exceeding results in most of the Eurozone Manufacturing PMI’s for December.
EUR/USD Exchange Rate News: Common Currency Opens on a Strong Note as New Year Begins
The Euro (EUR) has rallied against almost all of its competitors today, with the only loss to speak of being a dip of -0.5% against the Japanese Yen (EUR/JPY). Among the supportive Eurozone news items today have been the almost universally rising Manufacturing PMIs. The Italian, German, Greek and overall Eurozone Manufacturing PMIs for December have risen on previous estimates. Investors have also been satisfied by December’s Consumer Confidence figure for Spain, which has increased from 104.6 to 107.4.
The Euro’s many gains today include 0.6% against the US Dollar (EUR/USD), 1.6% against the Australian Dollar (EUR/AUD), 1.7% against the Canadian Dollar (EUR/CAD) and 1.8% against the New Zealand Dollar (EUR/NZD). For investors, these printings are a happy reversal on the low note that the common currency ended 2015 on.
US Dollar (USD) Unstable Today after Recent Speech from Fed’s Fischer
The US Dollar (USD) has opened on an uneven footing today, with sizable gains and losses being equally present for the US currency. With no direct data releases to refer to, investors have instead had to rely on a speech made yesterday by Fed Vice Chair Stanley Fischer. Fischer acknowledged that while the historic interest rate hike that took place in December was introduced smoothly, the central bank faces the possibility of adjusting its toolkit in the future due to investor uncertainty over further interest rate movement.
The US Dollar has risen by 1.1% against the Australian Dollar (USD/AUD) and by 1.2% against the New Zealand Dollar (USD/NZD) today, but has fallen by -0.5% against the Euro (USD/EUR) and by -0.9% against the Japanese Yen (USD/JPY).
EUR/USD Exchange Rate Forecast: German Inflation Rate Data due Shortly along with US Manufacturing Results
The next economic publications that are likely to affect the movement of the EUR/USD pairing will come from the Euro’s (EUR) side, with the German December CPI figures. At the time of writing, forecasts were positive across the board, with the harmonised and base results respectively expected to rise from 0.3% to 0.4% and 0.4% to 0.6%. On the month, forecasts have been for increases from 0.1% to 0.2% in both fields. Later in the day, further impactful Eurozone data will come in the form of the European Central Bank’s (ECB) weekly publication of details on quantitative easing.
On the US side of things, exchange rate movement can be expected when the ISM Manufacturing printing for December comes out in the afternoon. Forecasts are for an advance from 48.6 points to 49, but this would keep the gauge below the 50 mark separating growth from contraction. Another US announcement made at the same time will be the monthly Construction Spending figure for November, which has conversely been predicted to decline from 1% to 0.7%.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0918 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9162 today.