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Euro to US Dollar Exchange Rate Awaits Major Data to Influence Central Bank Bets

Euro to US Dollar Exchange Rate Steady Ahead of This Week’s Key Inflation Results

Investors were hesitant to move too much on the Euro to US Dollar (EUR/USD) exchange rate today, amid a lack of fresh support or drive for either currency. The Euro (EUR) continued to be driven by rival strength, but US Dollar (USD) demand is limited.

Last week saw EUR/USD start out strong, but gradually tumble as the US Dollar rebounded a week of poor performance. EUR/USD opened the week at the level of 1.1162 and ultimately closed at the level of 1.1121.

Since markets opened this morning, EUR/USD movement has been limited. EUR/USD continues to trend near the week’s opening levels at the time of writing on Monday afternoon.

For now, Euro and US Dollar investors are eagerly anticipating upcoming data that could drive European Central Bank (ECB) and Federal Reserve speculation.

Euro (EUR) Exchange Rates Lack Drive Ahead of Key Eurozone Data

Demand for the Euro has been mixed in recent weeks, and this mixed behaviour led to limited movement today.

While Eurozone data has been showing increasing signs of recovery following months of slowdown in 2019, some data remains disappointing.

Today’s German wholesale prices report from December showed an improvement over previous figures, but the data was still poor overall coming in at 0.0% month-on-month and -1.3% yearly.

With the Eurozone data outlook mixed, the Euro has been driven more by strength in rivals like the US Dollar.

As a result, today’s lack of Euro movement was also largely due to a lack of drive in US Dollar trade.

US Dollar (USD) Exchange Rates Firm after Last Week’s Recovery

Following days of US Dollar weakness on US-Iran military tensions at the beginning of last week, the US currency rebounded in the second half of the week.

While the US Dollar was unable to hold its best levels due to some concerning US Non-Farm Payroll results on Friday, the currency continued to find support from this rebound today.

For now, hopes that geopolitical uncertainties have calmed as well as anticipation for upcoming US ecostats are keeping the US Dollar resilient and helping it to sustain most of last week’s gains against the Euro.

On the other hand, concerns about signs of weaker US data are limiting the US Dollar’s potential for further advances.

Euro to US Dollar (EUR/USD) Exchange Rate Awaits Major Datasets This Week

Movement in both the Euro and US Dollar is limited for the time being, but upcoming data has the potential to cause major movement in the Euro to US Dollar (EUR/USD) exchange rate.

Tomorrow will see the publication of US inflation data from December, which will be followed by Eurozone inflation figures over the following days.

French inflation is due Wednesday, German inflation on Thursday and overall Eurozone inflation stats on Friday.

This week’s inflation results could influence European Central Bank (ECB) and Federal Reserve monetary policy speculation if they surprise investors.

Stronger Eurozone data would boost hopes for Eurozone economic resilience, soften ECB easing speculation and support EUR/USD. Similarly, strong US inflation data could offset concerns about weakness in other US data.

Any surprising developments in geopolitics could also influence the Euro to US Dollar (EUR/USD) exchange rate.