The Euro (EUR) has roared ahead against the US Dollar (EUR/USD) today, having made gains of 1% against the ‘Buck’ (USD).
Forecast-Meeting US Sales Stats Fail to Reassure USD Investors Today
While matching a forecasted figure is generally a good thing for an economic publication, today’s notable decline from 0.4% to -0.1% for the US Advance Retail Sales result in December has only disappointed investors in the US currency. Additionally, Industrial Production in the same month has also hit a negative by merely shifting from -0.9% to -0.4%.
The Euro (EUR) has risen by 0.4% against the US Dollar (EUR/USD) today, something mainly brought about by a rebound effect occurring from yesterday’s brief Renault investigation panic.
Currency Bloc Trade Balance due Shortly, along with Later US Sales Stats
The next results likely to shift the Euro (EUR) in the pairing will be the imminent Eurozone Trade Balance figures for November, which are expected to show a decline in the base surplus from 24.1bn to 23bn, but a rise in the non-seasonally adjusted variant from 19.9bn to 21bn.
Later on, the December US Advance Retail Sales data will be out in the afternoon; these were expected to show a decline from 0.2% to -0.1% at the time of writing.
The Euro (EUR) has declined by -0.3% against the US Dollar (EUR/USD) today, likely due to rapidly developing events in the Eurozone automobile sector.
Negative Results Fail to Dispel Lingering Spectre of VW Scandal in Europe
The Euro’s (EUR) decline in value can be partially attributed to the news that offices at Renault have been recently raided by anti-fraud police. The news sent shares in Renault down, along with those of fellow carmakers Peugeot, Daimler and BMW.
Although investigators failed to find evidence of falsified emissions data, the event nonetheless sent a panic rippling through the Eurozone, having brought up deeply unpleasant memories of the yet-unresolved Volkswagen emissions scandal which emerged last year.
The Euro (EUR) has made some minor positive movement against the US Dollar (EUR/USD) this afternoon, mainly due to the US currency falling in appeal after the Claims figures for January rose against estimates.
US Retail Sales Results due Tomorrow Afternoon, Pessimistic Forecasts at Present
Tomorrow will see the release of the US’s Advance Retail Sales figures covering the December period, along with the variants for the Control Group and those excluding automobile and fuel sales. Unfortunately for the ‘Buck’ (USD), expectations have been for a decline in all three fields.
The Euro to US Dollar (EUR/USD) exchange rate has risen by a moderate amount so far today following the release of the most impactful Eurozone data of the morning. The ‘Buck’ (USD), by contrast, has had a more mixed performance, although the US currency has still made a number of gains.
EUR/USD Exchange Rate News: Forecast-Meeting Eurozone Data Provides Solace for Investors
The Euro (EUR) has advanced across the board today, seeing rises of 0.3% against the Australian Dollar (EUR/AUD), 0.5% against the Canadian Dollar (EUR/CAD) and 0.7% against the Indian Rupee (EUR/INR) and the South African Rand (EUR/ZAR). These gains are largely in tune with Eurozone advances recorded earlier on in the week.
The causes for this positive movement are thought to be the morning’s German economic publications, which have matched predictions and reassured investors of the single currency’s worth.
The annual non-seasonally adjusted GDP result for 2015 has risen from 1.6% to 1.7% as expected, while although the Public Finances Balance-GDP Ratio for the previous year has fallen from 0.6% to 0.5%, this was also in line with forecasts.
US Dollar (USD) Exchange Rate Fluctuates after Fed’s Beige Book shows ‘Modest’ Growth
The US Dollar (USD) has been moving in a less consistent direction than the Euro (EUR) today, having made a loss of -0.2% against the Euro (USD/EUR) and trended narrowly against other peers. However, the US currency has also seen acceptable gains of 0.4% against the New Zealand Dollar (USD/NZD), the Indian Rupee (USD/INR) and the Japanese Yen (USD/JPY).
The most recent impactful US data release has come from the Federal Reserve, who put out their ‘Beige Book’ report yesterday. The document showed that while positive movement in the nation’s labour market and level of consumer spending had been seen, there was also the limiting factor of the excessive strength of the ‘Greenback’ and the worrying price of fuel commodities such as crude oil.
EUR/USD Exchange Rate Forecast: ECB Meeting due Shortly, with US Claims Data Due Later
The next movement in the EUR/USD pairing may come from the common currency’s side (EUR), with the announcement this afternoon of the European Central Bank’s (ECB) Account of the Monetary Policy Meeting. Naturally, any mentions of interest rates or quantitative easing will be closely scrutinised by investors.
On the US Dollar’s (USD) side, the nation’s Continuing and Initial Jobless Claims figures for the beginning of January are due this afternoon and at the time of writing, expectations were for minor reductions in both fields.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0902 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9174 today.