The Euro (EUR) has posted slight gains against the US Dollar (EUR/USD) today, something not entirely expected due to the German CPIs for August making no deviations from expectations this morning.
Accurate Predictions in US Confidence Score may provide more Comfortable Lead for Single Currency
The Euro’s (EUR) current position of strength in the pairing could be set for a major expansion later on, thanks to the market estimate for the US University of Michigan Confidence Index being that a fall from 91.9 to 91.1 points will occur.
The Euro to US Dollar (EUR/USD) exchange rate has posted a slight decline today and the common currency (EUR) has bombed against most other competitors following a no-nonsense speech by European Commission (EC) President Jean Claude-Juncker yesterday.
EUR/USD Exchange Rate News: Juncker states ‘No Compromise’ on Greek Bailout Terms for Future Leaders
Support of the Euro (EUR) has collapsed today after Juncker delivered a speech yesterday that revived concerns over Greece’s future position in the Eurozone. The Euro fell by -0.2% against the US Dollar (EUR/USD) today, just one of many losses. These included declines of over -0.5% against the Pound Sterling (EUR/GBP), the Canadian Dollar (EUR/CAD), the South African Rand (EUR/ZAR) and the New Zealand Dollar (EUR/NZD). The lowest point for the single currency was a -1.8% crash against the Australian Dollar (EUR/AUD). On the other side of the coin, the only gain for the Euro has been by 0.5% against the Japanese Yen (EUR/JPY).
This mass decline in support has been triggered by Juncker’s determination for a by-the-book following of the harsh austerity measures imposed on Greece in the conditions of the nation’s third bailout. Speaking in Strasbourg, Juncker declared that no alterations or deviations from plans would be permitted, stating ‘For Greece, the key now is to implement the deal which was agreed. There has to be broad political ownership for this’. Later in his address, Juncker darkly hinted at a potential Greek exit from the Eurozone if these conditions were not followed, saying ‘If this time rules agreed will not be respected, the reaction of the European Union and the Eurozone will be different’.
US Dollar has Relatively Better Day despite Damaging Mortgage Results
The US Dollar (USD) hasn’t exactly done well today, although compared to the Euro (EUR), its faring has been considerably better. The ‘Buck’ has dropped by more than -0.4% against the Canadian Dollar (USD/CAD) and the New Zealand Dollar (USD/NZD) today, but has risen by 0.2% against the Euro (USD/EUR) and by 0.3% against the Polish Zloty (USD/PLN). As with the single currency, the greatest advance for the ‘Greenback’ has been against the Japanese Yen (USD/JPY) by 0.8% and the biggest fall has been by -1.5% against the Australian Dollar (USD/AUD).
The most recent pieces of US economic data came yesterday with the MBA Mortgage Applications figure to September 4th showing that the number of recorded applications had fallen by -6.2%. At a time when speculators are looking for data that supports expectations of an early Federal Reserve interest rate rise, this kind of printing has not exactly been encouraging.
EUR/USD Exchange Rate Forecast: Lacking Eurozone Data puts US Results to the Fore
No major Eurozone economic publications are due until tomorrow morning with the German CPIs, so until then, the US Wholesale Inventories and Claims data out today will make the pairing leader apparent. The Claims figures have pessimistically been expected to show no reduction, but a forecast lower recorded amount of goods in inventories is actually beneficial for the US economy as a lesser quantity indicates that consumer purchasing is on the rise.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1188 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8940 today.