A small advance has been seen in the Euro to US Dollar (EUR/USD) exchange rate today, although neither currency has excelled itself against rivals due to negative circumstances.
EUR/USD Exchange Rate News: Rising Eurozone Current Account Fails to Inspire Confidence in Common Currency
The Euro (EUR) has risen by 0.3% against the US Dollar (EUR/USD) today, just one of a handful of gains for the single currency. Elsewhere, the Euro has fallen considerably, posting drops of -0.2% against the Japanese Yen (EUR/JPY), -0.3% against the Canadian Dollar (EUR/CAD) and -0.5% against the Australian Dollar (EUR/AUD). The Euro’s only other notable gain today has been by 0.3% against the Polish Zloty (EUR/PLN).
The only Euro-centric news today, the Eurozone Current Account numbers for July, have shown an increase over previous figures, although given the low-impact status of these results, more pressing news has pessimistically overshadowed the minor positive effect of the current account announcement. The most immediate affecter of the Eurozone will be Sunday’s 2nd Greek general election of 2015; at the time of writing, former leaders Syriza and rivals New Democracy were neck and neck, although whoever gets the most votes, it is expected that a coalition will need to be formed with the lesser parties.
The Icewoman Cometh: Yellen Holds the Fort on US Interest Rate Increase, ‘Buck’ Dives Accordingly
The US Dollar (USD) has followed the expected pattern of plummeting in value following a decision by the Federal Open Market Committee (FOMC) to freeze US interest rates at 0.25%. Expectations steadily diminished throughout the week, with hopes for a rate hike yesterday disappearing entirely among many speculators. Federal Reserve Chair Janet Yellen gave a dovish speech following the announcement, stating; ‘There will always be uncertainty, we can’t expect uncertainty to be fully resolved, but we want to take a little more time to evaluate the impact on the US [of recent market volatility].
The US Dollar has fallen across the board today; the worst losses have been by -0.3% against the Euro (USD/EUR), -0.4% against the New Zealand Dollar (USD/NZD) and the Indian Rupee (USD/INR) and by over -0.6% against the Japanese Yen (USD/JPY), the Australian Dollar (USD/AUD) and the Canadian Dollar (USD/CAD).
EUR/USD Exchange Rate Forecast: Today’s US Results may have Little Impact, Greek Election Next Major News
The next piece of Euro (EUR) news will come with the results of Sunday’s Greek election; a winner cannot be confidently called at this stage due to the closeness of the polls. Worryingly, it seems that regardless of whether Syriza or New Democracy get the most votes, they may have to include the neo-fascist Golden Dawn party as part of their coalition.
The next US results are actually due today, although given the current state of the ‘Greenback’ (USD), even positive results in the Leading Indicators for August and the Q2 Household Change in New Worth may not be enough to boost confidence in the US Dollar for the time being.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1445 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8737 today.
