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Euro to US Dollar Exchange Rate Struggling to Sustain Gains Ahead of European Central Bank

Euro to US Dollar Exchange Rate Jittery as Investors Await Key Data and News

The Euro to US Dollar (EUR/USD) exchange rate has been unable to recover from last week’s losses due to US Dollar (USD) resilience, but the Euro (EUR) is avoiding further losses as well. Investors are awaiting upcoming Eurozone data and European Central Bank (ECB) news.

Last week saw EUR/USD actually surging higher for most of the week. EUR/USD opened the week at 1.1120 and touched on a high of 1.1168, before slumping on Friday and closing the week at the level of 1.1090.

EUR/USD movement has been narrower since markets opened for this week. A lack of fresh drive, means investors are hesitant to move much on either currency. EUR/USD continues to trend near the week’s opening levels at the time of writing on Tuesday.

Key Eurozone data due in the coming sessions, as well as the European Central Bank (ECB) policy decision on Thursday, means EUR could drive Euro to US Dollar exchange rate movement more this week.

Euro (EUR) Exchange Rates Lack Drive as Investors Await Data and ECB

Investors haven’t had much reason to buy the Euro since the end of last week. While some decent Eurozone data had supported the Euro for much of last week, stronger performance in rivals like the US Dollar has left the shared currency without much strength.

Yesterday’s German PPI data and speech from European Central Bank (ECB) President Christine Lagarde did little to change the Euro outlook either.

Lagarde’s speech did cause markets to shift more focus towards an upcoming ECB policy review however.

Under Lagarde, the ECB will soon undergo a formal review of its strategy. Analysts currently don’t expect that it will lead to much significant change in the bank’s plans.

As a result though, Euro investors are now even more focused on the ECB as well as upcoming Eurozone data.

US Dollar (USD) Exchange Rates Resilient Following Last Week’s US Data

On Friday, the US Dollar experienced a jump in demand as investors reacted to the week’s surprisingly good US ecostats.

While some of the week’s data disappointed investors, the latest US retail sales and housing data was much stronger than forecast. The US Dollar surged in response, pushing its rival the Euro lower.

These strong stats are continuing to support the US Dollar this week. The data is keeping investors optimistic that the Federal Reserve will avoid a dovish tone on US monetary policy.

Like the Euro, the US Dollar is currently awaiting further influential news before investors make notable movements on it this week.

Euro to US Dollar (EUR/USD) Exchange Rate Anticipating European Central Bank (ECB)

While the Euro to US Dollar (EUR/USD) exchange rate could react to today’s German and Eurozone economic sentiment stats from ZEW for most of today, movement may be limited as well.

With more key data due in the coming sessions, as well as the European Central Bank’s (ECB) January policy decision on Thursday, investors may be hesitant to move on currencies much ahead of even more influential news.

Wednesday will see the publication of France’s January business confidence results, and US housing prices and home sales stats.

Thursday will of course be one of the week’s most influential sessions, with the European Central Bank holding its January policy decision.

The bank is expected to leave policy frozen, but any notable shift in stance or unexpected signals could cause big movement in the Euro to US Dollar (EUR/USD) exchange rate towards the end of the week.