The Euro (EUR) has risen by 0.3% against the US Dollar (EUR/USD) today, following a less-than-ideal result from the speeches of Federal Open Market Committee (FOMC) members Charles Evans and John Williams.
German Inflation Data to Take Precedence in Near-Future, though Forecasts are Pessimistic
The Euro (EUR) will be most immediately affected by the German CPIs for September, which are out soon. Although high-impact, current forecasts are not in the common currency’s favour, showing reductions in the rate of inflation compared to previous results.
The Euro’s rise against the US Dollar (EUR/USD) can be attributed to the fact that while Williams was supportive of a US interest rate hike taking place this year, his colleague Evans was strongly opposed to such a measure, adding that he wouldn’t feel comfortable raising rates until mid-2016 at the earliest.
The Euro (EUR) has trended narrowly in the positive against the US Dollar (EUR/USD) today, although overall the Eurozone has been problematically hit by a number of economic issues.
US Fed Speeches set to further disrupt Euro’s Performance if Hawkish Tone is Adopted
The US Dollar (USD) is set to lead the show into the evening today, as speeches from Federal Open Market Committee (FOMC) members Charles Evans and John Williams are due and if their sentiments are anything like those expressed by their fellows last week, a ‘Greenback’ rally could assuredly be on the cards in the near-future.
The Euro (EUR) has been hit strongest today by further news from the Volkswagen emissions scandal; Audi and Skoda have announced a collective total of 3.3 million of cars were rigged with defeat devices, but this still doesn’t make up for the 11 million figure claimed to be tainted by VW.
The Euro to US Dollar (EUR/USD) exchange rate has declined slightly today, although neither currency has excelled itself particularly on Monday morning.
EUR/USD Exchange Rate News: Potential Spanish Separation brings Eurozone Stability back into Question
The Euro (EUR) has fallen universally today, with the most prominent losses being by -0.2% against the US Dollar (EUR/USD) and the Indian Rupee (EUR/INR), -0.3% against the Pound Sterling (EUR/GBP) and the New Zealand Dollar (EUR/NZD) and -0.4% against the Japanese Yen (EUR/JPY).
Today is, for the most part, devoid of notable Eurozone economic releases, therefore today’s poor showing by the common currency can be at least partly attributed to political developments in Spain and the ongoing fallout of Volkswagen’s deceit over their emissions data.
In a historic moment, pro-independence party Together for Yes won the majority in parliamentary elections in Catalonia, one of Spain’s eastern regions. This has troubled speculators, as the party’s manifesto has been to push strongly for the creation of Catalonia as an independent state from Spain itself, thus reducing Spanish territory and, to an extent, its economy. Although the vote was not an official referendum on independence, the news still had enough impact to devalue the common currency significantly, evoking similar fears when the Scottish independence campaign came about.
Elsewhere, the Euro has also been damaged by the VW scandal, which has so far seen executives ousted and sales of VW vehicles halted in Switzerland.
US Dollar makes Little Movement ahead of Packed Economic Docket Today
The US Dollar (USD) has had a marginally better performance than the Euro (USD/EUR) today, posting gains of 0.2% against the Euro (USD/EUR and 0.3% against the Norwegian Krone (USD/NOK), although losses of -0.2% against the Japanese Yen (USD/JPY) and the New Zealand Dollar (USD/NZD) have also been seen.
The ‘Buck’ was supported last Friday by words from Fed Bank of Kansas City President Esther George, who repeated the optimistic sentiments of fellow Fed members Dennis Lockhart and Janet Yellen that a US interest rate hike would be in order as early as October, according to some interpretations. Although George is not a direct voting member of the FOMC, her words still carry weight, and coupled with Yellen’s status as Fed Chair, expectations are broadly positive for a rate hike this year.
EUR/USD Exchange Rate Forecast: Italian Results likely to be Overshadowed by Glut of US Data
With no major Eurozone results of note due out today, the US Dollar (USD) will be the focal point for speculation in the pairing this afternoon. Although the Italian Consumer and Business Confidence scores for September are in, these are considered low-impact in comparison to economic publications such as the US Incomes and Spending data for August, as well as the US Core Personal Consumption Expenditure figure for August.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1191 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8941 today.