The Euro to US Dollar (EUR/USD) exchange rate has slumped today, with the Euro also declining against a number of its other rivals. The probable causes are a hangover from yesterday’s ECB comments and the outcome of the morning’s Eurozone announcements. The US Dollar (USD) has trended narrowly, thanks to unstable crude oil prices.
EUR/USD Exchange Rate News: Falling PMI Figures Compounded by Cautious Growth Forecasts
The Euro (EUR) has made a marginal decline against the US Dollar (EUR/USD) today but has also recorded losses of -0.5% against Pound Sterling (EUR/GBP), -0.6% against the Canadian Dollar (EUR/CAD) and -0.8% against the Polish Zloty (EUR/PLN). On the plus side, an advance of 0.8% against the New Zealand Dollar (EUR/NZD) has also been recorded. This uninspiring performance is largely an echo of earlier weekly results for the Euro.
In addition to European Central Bank (ECB) President Mario Draghi giving a second dovish speech on the Eurozone for two days running, the Euro has also been softened this morning by the results of the German and Eurozone Composite, Services and Manufacturing PMIs for January. While forecasts had been for declines anyway, the reality showed worse-than-expected results in virtually every applicable field.
Adding on to this was the ECB Survey of Professional Forecasters, which lowered long-term inflation expectations to 1.8% and made little change to the currently cautious GDP growth predictions.
US Dollar (USD) Continues to be Destabilised by Crude Oil Costs Today
The US Dollar (USD) has made a middling performance overall today, having fallen by -0.3% against Pound Sterling (USD/GBP), -0.4% against the Canadian Dollar (USD/CAD) and -0.8% against the Polish Zloty (USD/PLN). As with the Euro (EUR), the only notable rise has been by 0.8% against the New Zealand Dollar (USD/NZD).
In addition to the price of crude oil per barrel rising temporarily above the $30 mark today, the US Dollar has otherwise been affected by yesterday’s mixed claims results for January and the major rise in Crude Oil Inventories in January.
EUR/USD Exchange Rate Forecast: Further Movement Likely from Davos Speeches Today
With the most impactful Eurozone data now out today and no US data due until the afternoon, the next movements in the EUR/USD pairing are likely to be caused by scheduled speeches at the World Economic Forum in Davos, such as those entitled ‘Euro at a Tipping Point’, ‘John Kerry: Special Address’ and ‘The Global Security Outlook’.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0837 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9231 today.