The Euro (EUR) has dropped by -0.5% against the US Dollar (EUR/USD) since earlier, on the back of the news that the French government will be extending the national state of emergency for three months following the recent attacks in Paris.
ECB’s Nowotny’s Speech could cause EUR/USD Movement Imminently
The next event likely to cause movement for the Euro (EUR) will be a speech from European Central Bank (ECB) Governing Council member Ewald Nowotny, who is due to discuss the economic recovery of Greece as part of a panel.
The Euro to US Dollar (EUR/USD) exchange rate has declined this morning following the tragic events of Friday, although the day may still see some hope restored to the single currency due to its domestic data.
EUR/USD Exchange Rate News: Single Currency Slumps in the Wake of Terrorist Attacks
The Euro (EUR) has largely fallen across the board today, declining by -0.3% against the US Dollar (EUR/USD) and the Canadian Dollar (EUR/CAD) and -0.6% against the Indian Rupee (EUR/INR) and the South African Rand (EUR/ZAR). One of the few gains for the Euro has been by 0.2% against the Australian Dollar (EUR/AUD).
The primary cause for this fall in value for the Euro has been a severe dive in the appeal of the currency following the violent events that took place in France on Friday and Saturday. France’s tourism industry is expected to take a hit in the coming months, which will in turn lower the GDP of one of the Eurozone’s biggest member nations.
Mix of US Results Last Week see USD/EUR Exchange Rate in Favourable Position Today
The US Dollar (USD) has put on an inconsistent performance so far today, although on the whole it has risen against its rivals. The most notable loss has been by -0.2% against the Canadian Dollar (USD/CAD), while advances of 0.2% against the Australian Dollar (USD/AUD) and over 0.3% against the Polish Zloty (USD/PLN) and 0.4% against the Euro (USD/EUR) have also been seen.
The most recent major US economic publications were contrasting: the October Advance Retail Sales and University of Michigan Confidence score for November were both out on Friday and while the former fell short of expectations to 0.1%, the latter rose above forecasts from 90 points to 93.1.
EUR/USD Exchange Rate Forecast: Eurozone CPIs and Draghi Speech Impending
The first releases that will affect the pairing today will be the Eurozone Inflation Rate figures for October. At the time of writing, the only change that has been predicted based on previous results was a decline from 0.2% to 0.1%.
Shortly after these releases, European Central Bank (ECB) President Mario Draghi will be giving a speech in Madrid. Although last week saw an about-face from Draghi on his stance on further quantitative easing (QE), another shift in his attitude towards a reduction outlook could go some way to restoring confidence in the common currency today.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0731 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9320 today.