The Euro to US Dollar (EUR/USD) exchange rate has risen by 0.2% today as differing opinions over the Greek bailout have divided the Dutch parliament.
Greek Bailout Vote may Cause Dutch VoNC – Despite Unofficial Debate Status
The Euro (EUR) has gained by 0.2% against the US Dollar (EUR/USD) today, although the common currency has trended narrowly elsewhere. The most pressing event that will impact the Euro today is the outcome of the German vote on whether or not they will approve the Greek bailout, but another talk over the proposal has caused turmoil.
While they are not voting to approve or reject the Greek bailout, the Dutch parliament is holding debates over the deal today, and forecasts have been pessimistic for the outcome. The worst-case predictions are for a vote of no confidence against Dutch Prime Minister Mark Rutte, given that his support of the bailout has been heavily criticised by hardliners within his own party. Rutte defended his decisions, saying ‘In the end however it’s not only in Greece’s interest, but in Europe’s interest for it to be carried through’.
The Euro to US Dollar (EUR/USD) exchange rate has flatlined today; the US Building and Housing figures are due in later on.
Uncooperative EU Parliaments Could Throw Spanner in EUR/USD Works
The Euro (EUR) has trended narrowly against the US Dollar (EUR/USD) today as the European parliamentary votes to secure the Greek bailout deal continue. Finland approved the measure on Friday, but several European parliaments have yet to decide whether they will support the measure this week.
Today, Spanish, Estonian and Austrian MPs will vote on the matter; all are expected to approve, although German MPs remain a fly in the ointment for a quick, clean approval. Rumours of dissent and objections have swirled around the Bundestag for weeks, and despite German Chancellor Angela Merkel’s explicit support of the plan, her party members may not toe the line, which would surely upset proceedings and send the Euro dropping down.
The US Building Permits and Housing Starts figures for July are due later today, and dips in both of these fields could send the Euro back up against the ‘Greenback’ (EUR/USD).
The Euro to US Dollar (EUR/USD) exchange rate has declined slightly today as Greece approaches the final hurdle for securing its third bailout package.
EUR to USD Exchange Rate News: Timely Bailout Closure is not guaranteed
The Euro (EUR) has dropped by -0.2% against the US Dollar (EUR/USD) today as Greek bailout talks enter their (supposedly) final week of negotiations. The proposal was approved by Eurozone finance ministers on Friday evening after narrowly scraping through the Greek parliament in the morning. However, parliaments of Europe still have to give their approval this week before the contract is sealed.
The biggest obstacle in this final stage is thought to be Germany, as a number of German officials have repeatedly objected to providing debt relief to Greece, while the International Monetary Fund (IMF) has refused to agree to the deal unless debt relief is included. German Chancellor Angela Merkel has supported the motion of writing off some of Greece’s debts, and has urged her MPs to do the same when voting. Whether they will follow suit, however, remains to be seen.
The Euro rose by 0.3% against the Australian Dollar (EUR/AUD), the Canadian Dollar (EUR/CAD) and the South African Rand (EUR/ZAR) today, but has fallen by -0.2% against the Pound Sterling (EUR/GBP) and the New Zealand Dollar (EUR/NZD).
US Dollar to Euro (USD/EUR) Exchange Rate Advances from Eurozone Doubts
The US Dollar (USD) has risen by 0.2% against the Euro (USD/EUR) today, and has made greater gains elsewhere. The ‘Greenback’ has gained by over 0.3% against the Canadian Dollar (USD/CAD), the Indian Rupee (USD/INR) and the South African Rand (USD/ZAR) and has bettered this with an increase of 0.6% against the Norwegian Krone (USD/NOK).
This comes as the Euro’s (EUR) mixed performance has triggered a rise in demand for the safe-haven currency. The US Dollar continues to be affected by speculation over whether the Federal Reserve will increase the US interest rate before the end of the year and the drop in the University of Michigan Confidence survey score for August (released on Friday) has prevented the ‘Greenback’ from furthering its gains against the common currency today.
EUR/USD Exchange Rate Predictions: US Stock Data may cause Uptrend
The Euro (EUR) will be most affected in the next few days by a successful conclusion to the Greek bailout talks; while a rally for the single currency might be expected, this could also swing the other way over persistent doubts over the long-term potential of the deal. The US Dollar’s (USD) performance will be determined by the US NAHB Housing Market Index of August, due later today. A below-forecast result is likely to trigger significant movements for the ‘Greenback’ against the Euro (USD/EUR).
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1106 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9007 today.