The Euro to US Dollar (EUR/USD) exchange rate has risen by a small amount today, with greater gains being seen elsewhere for the common currency due to the day’s supportive Eurozone economic publications.
EUR/USD Exchange Rate News: Day of PMIs Provides mostly Positive Result for Euro Today
The Euro (EUR) has risen by 0.3% against the US Dollar (EUR/USD) today, which has been one of the lowest of the Euro’s many gains today. These have been made up of 0.5% against the Australian Dollar (EUR/AUD), 0.6% against the Canadian Dollar (EUR/CAD) and the Indian Rupee (EUR/INR), along with a 0.8% rise against the New Zealand Dollar (EUR/NZD).
The main reason for the Euro’s strong performance today has been that most of the Eurozone October Manufacturing PMIs released today have turned out positive, with the exception of France’s tiny decline against expectations. Germany, Italy and the Eurozone as a whole have all exceeded forecasts, with the disappointing Dutch and French Bill and BTF Auction results failing to put a dampener on the Euro’s current uptrend.
US Dollar down against the Euro (USD/EUR) on Weekend’s Weak Chinese Data
The US Dollar (USD) has had an uninspiring performance today, falling by -0.3% against the Euro and posting a mix of gains and losses elsewhere. In the former category, a rise of more than 0.3% has been recorded against the Indian Rupee (USD/INR) and the New Zealand Dollar (USD/NZD), while the latter has been made up of -0.4% against the South African Rand (USD/ZAR) and -0.5% against the Polish Zloty (USD/PLN).
The most detrimental factor to the US Dollar recently has been announcement on Sunday of the nation’s Manufacturing PMI for October, which has remained at the contraction-indicative figure of 49.8 for the second month in a row. As a result of this decline for the Yuan (CNY), investors have lowered their expectations for a Fed interest hike in the future, which has in turn devalued the ‘Greenback’.
EUR/USD Exchange Rate Forecast: Impending US Manufacturing Result set to provide Next Pairing Movement
The next pieces of Eurozone data due are not out until tomorrow, therefore it remains for the US to provide further influence on the EUR/USD exchange rate until then. The imminent ISM Manufacturing result for October has been forecast to decline marginally from 50.2 points to 50, while a similar deterioration is expected to occur with the Construction Spending figure for September. The ISM Prices Paid figures, however, has growth predicted in the form of a rise from 38 points to 38.8.
Later on, John Williams of the Federal Reserve is due to speak at the Fed’s San Francisco conference, although even a hawkish attitude at this early stage may not increase the appeal of the US Dollar, due to the fact that there will be plenty of economic releases between now and the December 16th Interest Rate Decision that may change Williams’ mind.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1042 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9059 today.