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Euro to US Dollar (EUR/USD) Exchange Rate Forecast to Rally ahead of US Jobs Data

UPDATE

The Euro to US Dollar (EUR/USD) exchange rate advanced by around 0.6% on Thursday morning.

Greek MPs voted to accept a second package of reforms in order to unlock vital financial aid. Prime Minister Alexis Tsipras had to rely on the opposition vote to pass the reforms, but stated that the Greek government had little choice. He has stated openly that he does not feel the deal is good for Greece, but urged that he will try and improve the terms when it comes to final negotiations.

The US Dollar, meanwhile, softened versus its major rivals thanks to dampened demand for safe-haven assets. US Jobs data, due for publication later on Thursday afternoon, has the potential to provoke ‘Greenback’ (USD) volatility.

The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.0992.

Yesterday…

The Euro to US Dollar (EUR/USD) exchange rate declined by around -0.5% on Wednesday afternoon. The depreciation can be linked to positive US data results which saw the House Price Index and Existing Home Sales better the respective median market forecasts. The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.0886.

Earlier…

Euro (EUR) Exchange Rate Forecast to Hold Steady against the US Dollar (USD) amid Greek Uncertainties

The Euro to US Dollar (EUR/USD) exchange rate was trending within a tight range on Wednesday morning.

As Greek MPs prepare to vote on more reforms in order to unlock the third financial aid package, the common currency edged lower versus its currency rivals. Although Finance Minister Euclid Tsakalotos has urged MPs to vote yes to reforms so serious negotiations can begin on Friday, there is a buzz of uncertainty. Some analysts fear that Greek MPs will reject the terms which could set in motion another long period of geopolitical tensions.

With an absence of influential domestic data to provoke changes, the shared currency is likely to hold a weak position versus its major rivals. Even if MPs decide to agree to the measures, the Euro is forecast to decline by many economists. This is because trader focus will shift from geopolitics to monetary policy divergence, and the European Central Bank (ECB) is lagging behind other major central banks.

The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.0943.

US Dollar (USD) Exchange Rate Forecast to Trend within a Narrow Range against the Common Currency (EUR) ahead of US Housing Data

Having strengthened considerably amid speculation of a fourth-quarter Federal Reserve benchmark interest rate hike, the US Dollar edged lower versus some of its currency competitors during Wednesday’s European session. This is likely to be the result of trader profit-taking after the recent surge opened up some attractive selling positions.

US economic data, due for publication later on Wednesday afternoon, has the potential to provoke changes for the ‘Greenback’ (USD). May’s House Price Index is forecast to increase by 0.4%, whilst June’s Existing Home Sales is forecast to advance by 0.9%. MBA Mortgage Applications for the week ending July 17th may also be of interest to those invested in the US asset.

The Euro to US Dollar (EUR/USD) exchange rate dropped to a low of 1.0922 today.

Euro to US Dollar (EUR/USD) Exchange Rate Forecast to Fluctuate on US Housing Data, Decline ahead of Greek MPs Vote

The US ecostats, due for publication later on Wednesday afternoon, have the potential to provoke changes for the Euro to US Dollar (EUR/USD) exchange rate. However, there is also a high likelihood that the pairing will ultimately soften as traders prepare for the results from the Greek vote on the second reform package.

Thursday ought to see EUR/USD volatility with US labour market data due for publication. In terms of European data, Eurozone Consumer Confidence holds the most economic weighting. However, the single currency’s movement is most likely to be dictated by how the Greek MPs vote tonight.

The Euro to US Dollar (EUR/USD) exchange rate climbed to a high of 1.0967 today.