The Euro to US Dollar (EUR/USD) exchange rate has fallen noticeably today, with the main reason being major investor uncertainty surrounding the approaching European Central Bank (ECB) announcements.
EUR/USD Exchange Rate News: German Ecostats do Little to Reassure Investors Today
The morning began poorly for the Euro (EUR), which has slipped across the board owing to a disappointing lot of starting domestic data.
These less-than-impressive results have included Germany’s trade balance outcome for January, along with the import and export stats for the same period. In the first case, a contraction of the deficit has been seen from 19bn to 13.6bn, while exports have similarly flopped with a shift from -0.7% to -0.5%. Imports were actually positive with a rise from -1.6% to 1.2% being recorded, but this failed to reassure investors to any great degree.
The Euro has fallen by -0.2% against the US Dollar (EUR/USD), -0.3% against the Pound Sterling (EUR/GBP), -0.5% against the Australian Dollar (EUR/AUD) and -0.7% against the New Zealand Dollar (AUD/NZD) today.
US Dollar (USD) Makes Middling Movement Today on Recent Contrasting Data
The US Dollar (USD) has made uncertain movement so far today, with losses being recorded of -0.2% against the Australian Dollar (USD/AUD) and the Indian Rupee (USD/INR) and -0.5% against the New Zealand Dollar (USD/NZD). On the positive side, gains have included 0.2% against the Euro (USD/EUR) and the Japanese Yen (USD/JPY).
The ‘Buck’ has been put in this position by yesterday’s contrasts; MBA mortgage applications in January rose from -4.80% to 0.2%, but wholesale inventories also rose detrimentally from 0% to 0.3% in the same month.
EUR/USD Exchange Rate Forecast: US Claims Stats and ECB News to Focus on Today
Today is an important day for the US but a far more important one for the Eurozone. Shortly after 12, the ECB is scheduled to give its announcements regarding the interest rate decision, the deposit facility rate and the marginal lending facility.
Current forecasts are for no change of the interest rate at 0.05%, a widening of the deposit facility rate from -0.30% to -0.40% and a stagnation of the lending facility at 0.30%.
Additionally, economists are sure to pay equal, if not greater attention to the press conference due to be delivered by ECB President Mario Draghi shortly after the trio of announcements. The popular consensus is that Draghi must announce an expansion or intensification of quantitative easing, so as to revitalise a currently flagging economy.
After the dust has settled, the positively forecast US claims stats for the end of February and the beginning of March will be announced.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0967 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9122 today.