The Euro (EUR) has risen by 0.4% against the US Dollar (EUR/USD) today, just one of a number of gains for the common currency. This follows further cautious words from Fed policymakers, particularly Lael Brainard, who spoke last night.
ZEW Surveys could Devalue Single Currency (EUR) in Immediate Future
While today’s negative posting German WPIs and CPIs have failed to dent the Euro (EUR), the weightier German and Eurozone Surveys of Economic Sentiment and Current Situation analysis that are due out soon could push the Euro down in the pairing, given that they have been predicted to fall on their previous figures.
The Euro (EUR) has trended narrowly in a positive range against the US Dollar (EUR/USD) today, although the US Dollar’s (USD) failing is unusual given recent developments.
Further Fed Speech due Today, followed by Eurozone CPIs and WPIs Tomorrow
As mentioned earlier, speeches from Fed policymakers have been out today. One in particular, Dennis Lockhart’s, was in many senses optimistic, although at the time of writing the US Dollar (USD) was still in a deep slump against its rivals.
The last of the speeches from Lael Brainard is due tonight; following this will be a day of actual Eurozone results, comprised mainly of CPI and WPI figures from both the Eurozone and Germany.
The Euro to US Dollar (EUR/USD) exchange rate has risen by a small amount today owing to a minor positive in France’s data, although little further movement is expected to occur during a particularly slow news day.
EUR/USD Exchange Rate News: France Posts Current Account Surplus, German Data Out Tomorrow
The Euro (EUR) has risen by 0.2% against the US Dollar (EUR/USD) today; elsewhere, the single currency has seen minor gains and losses against a number of its rivals. These have included 0.2% against the Swiss Franc (EUR/CHF) and the Indian Rupee (EUR/INR) in the former category and more than -0.2% against the South African Rand (EUR/ZAR) and the New Zealand Dollar (EUR/NZD) in the latter.
Eurozone data has been thin on the ground so far today, with no notable reports due for release until tomorrow. As a consequence, investors have instead had to refer to a minor release from France, the Current Account for August, which has risen by €0.2bn against predictions for a fall of the same amount.
US Dollar (USD) Adrift following Fed’s Fischer’s Dovish Stance
The US Dollar (USD) has been on a notable downtrend today, falling against all of its rivals and suffering from the same data deficit as the Euro (EUR). Against the Euro, the ‘Buck’ has fallen by -0.2%; this has been exceeded with declines of over -0.3% against the Australian Dollar (USD/AUD), the Pound Sterling (USD/GBP), the New Zealand Dollar (USD/NZD) and the South African Rand (USD/ZAR).
US Dollar support has been severely lacking of late, on account of notable Fed policymakers expressing cautious attitudes with regard to an interest rate hike and US economic data failing to provide surges in confidence among investors. The overall message has been to ‘wait-and-see’, something that hasn’t been received with much optimism. Most recently, Fed Vice-Chairman Stanley Fischer commented on the impact of global economic developments on the Fed’s decision: ‘We do not currently anticipate that the effects of these recent developments on the US economy will prove to be large enough to have a significant effect on the path for policy.’
EUR/USD Exchange Rate Forecast: Further Fed Speeches due Today, along with Minor Eurozone Postings
The biggest announcements to affect the EUR/USD pairing today are likely to be speeches from Fed officials Dennis Lockhart, Charles Evans and Lael Brainard, all of whom are due to give their thoughts on economic outlook. Less impactful will be the Portuguese inflation data for September and France’s BTF Auctions, taking place this afternoon.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1377 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8793 today.