The Euro to US Dollar (EUR/USD) exchange rate recorded gains on Friday ahead of German Consumer Price Index (CPI) and US Gross Domestic Product (GDP) and Personal Consumption figures.
The Euro is constantly trading under the cloud of Greek negotiations which threatens to pressure the single currency lower at any moment.
Greek Prime Minister Alexis Tsipras convened an emergency meeting on Friday morning with the government’s economic team to discuss the potential upcoming financing gap and whether the Greek government will be holding its own vote on the topic of bailout extensions.
Germany has been doubtful of Greece’s intentions despite voting in favour of the nation’s recent reform proposal.
German Finance Minister Wolfgang Schaeuble commented: ‘Now the question is whether one can trust the assurances of the Greek government or not. One must understand that there are many doubts in Germany.’
Meanwhile the US Dollar could be in for a wild ride on Friday with highly influential data scheduled for release. US Gross Domestic Product (GDP) will be out and is forecast to fall from an annualised 2.6% to 2.0% in the fourth quarter.
In addition, US Personal Consumption is predicted to remain at 4.3% in Q4. However, if either ecostat falls out of line with forecasts, the ‘Buck’ could swing.
Friday will also see some moderately important data publishing with both US Pending Home Sales and University of Michigan Confidence stats.
Euro to US Dollar (EUR/USD) Exchange Rate Forecast
The Euro to US Dollar (EUR/USD) exchange rate could experience movement in the week ahead with several influential data releases.
Monday will kick the week off with Eurozone Unemployment Rate and Consumer Price Index stats while the US will publish Personal Consumption Expenditure.
Wednesday could be an interesting day when the US Federal Reserve releases its Beige Book. The central bank recently adjusted its language and suggested that interest rates could remain lower for longer in the current economic climate.
US ISM Non-Manufacturing Composite will also emerge on Wednesday. Friday could be the biggest day for the US Dollar to Euro (USD/EUR) exchange rate when US Change in Non Farm Payrolls and Unemployment Rate figures are released.
The US labour market is expected to fall from 5.7% to 5.6% in February and could be an event to see the US Dollar rally.
Meanwhile, Eurozone Gross Domestic Product stats will also be out on Friday.
The Euro to US Dollar (EUR/USD) exchange rate is trading at 1.1237. The US Dollar to Euro exchange rate (USD/EUR) exchange rate is trending in the region of 0.8901.