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Euro to US Dollar Exchange Rate Falls Back as Markets Calm from Weekend Panic

Euro to US Dollar Exchange Rate Sliding as Investors Await More Influential News

The Euro to US Dollar (EUR/USD) exchange rate is struggling to continue its recent advance attempts, as despite fresh Euro (EUR) support the US Dollar (USD) is firming following days of market panic.

Last week saw mixed EUR/USD movement but ultimately slipped from 1.1174 to 1.1162.

This week could be more of the same, as EUR/USD briefly reached above the level of 1.12 yesterday but at the time of writing is trending more closely above the week’s opening levels again.

Investors are now eagerly awaiting upcoming Eurozone and US data, which could drive Euro to US Dollar exchange rate movement later in the week.

Euro (EUR) Exchange Rates Fails to Enjoy Fresh Support despite Stronger Retail Sales

Today’s Eurozone ecostats were generally optimistic. While Eurozone inflation projections failed to impress, meeting estimates and coming in at 1.3% year-on-year as expected, the day’s other data was more impressive.

German construction data from December showed stronger than expected growth, and Eurozone retail sales jumped to 2.2% year-on-year, well above the expected 1.3%.

These stats were not enough to keep the Euro gaining however, as its biggest rival the US Dollar rebounded from days of jittery movement.

Investors are also hesitant to buy the Euro too much ahead of more influential Eurozone data due later in the week.

US Dollar (USD) Exchange Rates Rebound as Markets Calm from Rise in Military Tensions

In recent sessions, global headlines have been dominated by news that the US killed Iranian General Qassem Soleimani in an air strike at the end of last week.

Soleimani was seen as Iran’s second most powerful figure, so his death caused a surge in panic that US-Iran military action could escalate.

While typically a safe haven currency, the US Dollar was unable to benefit from the news due to concerns over the potential impact that conflict could have on the US economy.

Investors instead bought over major safe havens like the Japanese Yen (JPY). In fact, the US Dollar actually weakened amid this news due to recent US data worsening concerns about the nation’s economic outlook.

Still, the US Dollar has been steadying today, regaining some ground against its rival the Euro. According to Analysts from Commerzbank:

‘Since no further bad news from the Middle East followed, markets have calmed down somewhat and panic moves like in the USD or the JPY have been corrected,’

Euro to US Dollar (EUR/USD) Exchange Rate Awaits Major Upcoming Data

Investors were hesitant to move too much on the Euro today. While this was partially due to modest improvements in Eurozone data being fairly unsurprising at the moment, investors are also awaiting upcoming data before making fresh moves.

There is still major Eurozone and US data due for publication over the coming days.

Wednesday will see the publication of German factory orders, French trade balance, and Eurozone confidence results. This will be followed on Thursday by Eurozone trade stats.

The US data due towards the end of the week could be even more influential though, as Non-Farm Payroll job market stats will be published on Friday.

If Eurozone data continues to beat forecasts, the Euro’s appeal is likely to strengthen and EUR/USD could climb again.

Euro to US Dollar (EUR/USD) exchange rate investors will also be keeping an eye out for surprises in global geopolitics that could drive demand for safe havens like the US Dollar.