The Euro (EUR) has dropped by -0.8% against the US Dollar (EUR/USD) today after European Central Bank (ECB) President Mario Draghi’s speech on future ECB policy devalued the common currency.
German Results may Restore Euro to Glory Tomorrow
The Euro (EUR) has suffered a significant loss today from Draghi’s speech, which has, among other things, detailed the fact that the ECB may extend its current program of quantitative easing beyond September next year.
Despite this, there is still the time and opportunity needed for a Euro uptrend before the European trading session closes tomorrow, as the German Factory Orders, Construction PMI and Retail PMI are due in tomorrow. Along with the Eurozone Retail PMI, these results all have the potential to restore some of the confidence the Euro saw this morning against the ‘Greenback’ (EUR/USD).
The Euro to US Dollar (EUR/USD) exchange rate has risen by a marginal amount today after the US data released yesterday failed to give the ‘Buck’ (USD) a decisive edge.
European Central Bank Sentiments will Decide Euro’s Performance Today
The US Mortgage Applications figures to the end of August 28th yesterday showed an unprecedented 11.3% rise from the previous result of 0.2%, although this positive news was punctured by the US Employment Change for August and Factory Orders for July results, which failed to meet with expectations. The outcome of this was that no major changes took place in the EUR/USD exchange rate, but today’s intended releases have the potential to make one currency the leader in the pairing.
The European Central Bank’s (ECB) interest rate decision, as well as their stance on further quantitative easing, will have a major impact on the Euro’s (EUR) performance today. However, later on any potential gains made by the common currency may be unravelled if the US ISM Non-Manufacturing Composite score rises against the predicted drop of -2.1 points.
The Euro to US Dollar (EUR/USD) exchange rate has declined marginally today; elsewhere, both currencies traded statically due to lingering after effects from yesterday’s economic results.
EUR/USD Exchange Rate News: Common Currency Crumbles as Eurozone Manufacturing PMI Shows Overall Decline
The Euro (EUR) has trended in a narrow range against the US Dollar (EUR/USD) today although losses elsewhere have been somewhat more pronounced. The common currency has dropped by more than -0.2% against the Swiss Franc (EUR/CHF), the Indian Rupee (EUR/INR) and the New Zealand Dollar (EUR/NZD). The Euro’s greatest gains today have been a narrow trend against the Pound Sterling (EUR/GBP) and a rise of 0.5% against the South African Rand (EUR/ZAR).
The Euro has been harmed recently by Eurozone Manufacturing PMIs for August showing negative results. The Eurozone Manufacturing PMI fell overall by -0.1 point; a fall in the Italian score and a continued contraction for France added up to diminish confidence in the single currency, and today’s Eurozone PPIs have been similarly disappointing. Although the monthly and annual figures for July met with forecasts, they both showed declines of -0.1% and -2.1% respectively.
USD/EUR Exchange Rate Uncertainty Rages as Fed Officials Speak against the Facts
The US Dollar (USD) has mirrored the Euro (EUR) in its performance today, seeing little by way of vaolatility against its rivals. Positive results include 0.4% against the Swiss Franc (USD/CHF) and 0.5% against the South African Rand (USD/ZAR), while losses have been made up of falls of over -0.2% against the Indian Rupee (USD/INR) and the New Zealand Dollar (USD/NZD). Against the Euro (USD/EUR), the ‘Buck’ has seen minor gains by trending narrowly.
The US Dollar saw a major loss of confidence yesterday after the ISM Manufacturing score for August dropped below forecasts to show a 51.1 score, a -1.6 point drop from the previous month’s score of 52.7. Despite this, Federal Reserve Bank of Boston President Eric Rosengren said yesterday that ‘while market attention has focused on the exact timing of potential rate rises, macroeconomic models of the economy overwhelmingly suggest little impact on the broader economic landscape from moving the timing of initial [US] interest rate hikes forward or backward by a couple of months’. The statement was ultimately neutral in context, given that the Fed has not yet announced if they will raise US interest rates in September, and it is worth bearing in mind that Rosengren doesn’t actually vote on the Federal Open Market Committee’s (FOMC) monetary policies.
EUR/USD Exchange Rate Forecast: ‘Greenback’ may take the Lead if US Results don’t disappoint
As all the major Eurozone data publications have been released today, it seems possible that the US Dollar (USD) will extend its current gains into something more considerable as the European session progresses. The US Mortgage Applications and Employment Change figures are due out today; no forecasts have been made for the former figure, but a 200k person increase has been optimistically predicted for the latter.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1278 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8870 today.