The value of the Euro (EUR) has deteriorated considerably today, with the EUR/USD exchange rate worsening to -0.9%.
Chinese Investment in US Spurs Rise in USD Appeal Today
In addition to having an ostensibly growing economy, the US has also been supported of late by a flurry of overseas investment from China, where wealthy citizens are investing in ‘safer’ overseas projects in countries such as the US in order to avoid the present risks of the homeland.
The Euro to US Dollar (EUR/USD) exchange rate has fallen noticeably today, with the Euro (EUR) falling against most of its other rivals.
EUR/USD Exchange Rate News: Morning’s Eurozone Ecostats Send Investors Fleeing Today
The Euro (EUR) has been on a general downtrend today, with the only real advance being by 1.3% against the floundering Pound Sterling (EUR/GBP). Elsewhere, the Euro has fallen by -0.4% against the US Dollar (EUR/USD), -0.7% against the Indian Rupee (EUR/INR), -0.8% against the New Zealand Dollar (EUR/NZD) and -1.1% against the South African Rand (EUR/ZAR).
The morning’s Eurozone economic publications have been detrimental in nature, with the overall manufacturing, services and composite PMIs for February all falling on previous entries to move dangerously close to the sub-50 contraction zone. The only real rise seen of all the contributing fields has come from Germany, in the form of an increase from 55 points to 55.1 for the services PMI.
US Dollar (USD) Fluctuates Today as Investors Digest Previous Rate Hike Statement
The value of the US Dollar (USD) has been mixed across the board today; the ‘Buck’ has recorded gains of 0.6% against the Swiss Franc (USD/CHF) and Euro (USD/EUR) and 1.7% against Pound Sterling (USD/GBP), but has otherwise printed losses of -0.4% against the Australian Dollar (USD/AUD) and -0.6% against the South African Rand (USD/ZAR).
The US currency actually ended last week on a relative high, given that base inflation doubled on the year in January. Additionally, Fed official Loretta Mester reiterated that the US economy was faring well in her eyes and that the central bank was on track to deliver timely, gradual interest rate hikes in the future.
EUR/USD Exchange Rate Forecast: US Dollar Centre Stage This Afternoon
As the bulk of the day’s Eurozone contributions have already come, the next movement likely for the EUR/USD pairing is set to be generated by shifts in the latter currency.
This afternoon will see the announcement of the January Chicago Fed national activity index, as well as the more impactful manufacturing PMI for February. At the time of writing, forecasts were for a decline to -0.10 for the former field and a minimal advance from 52.4 to 52.5 for the latter.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1061 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9044 today.