EUR/USD Exchange Rate Steadies as Euro Traders Brace for European Elections
The Euro US Dollar (EUR/USD) exchange rate is rangebound today and is currently trading around $1.1161 on the inter-bank market.
The Euro (EUR) stabilised against the US Dollar (USD) following the publication of the German PPI figures for April, which rose above the forecast 0.2% to 0.5%.
Today also saw the release of the Eurozone’s non-seasonally adjusted current account figures for March, which came in at a better-than-expected €35.0bn.
However, many single currency traders are paying close attention to news surrounding the upcoming European Elections on Thursday.
Euro traders are becoming increasingly concerned that Italy and the UK’s Brexit party could destabilise the European Union, and thus this has left investors concerned about the Eurozone’s economy.
Matteo Salvini, the Deputy Prime Minister of Italy, recently hit out against the EU, saying of the upcoming elections:
‘It is an historic moment important enough to free the continent from the illegal occupation organized by Brussels for many years.’
USD/USD Exchange Rate Flat as US-China Trade Tensions Hold Back ‘Greenback’
The US Dollar (USD), meanwhile, has been plagued by ongoing US-China trade tensions, with ‘Greenback’ traders becoming increasingly jittery over the effects on the US economy.
Angel Gurria, the Secretary General for the OECD, remained pessimistic about economic growth, saying:
‘Everybody is betting today… on a deal between China and the U.S. but the problem is that on the face of it the tensions are getting greater and, second, the problem – the spill over effect of this tension – is becoming more and more evident.’
Tensions between the two superpowers is continuing, with US President Donald Trump’s recent declaration of a national emergency over the Chinese telecom giant, Huawei, causing complications.
Mr Trump remained optimistic, however, saying:
‘We’re taking in billions of dollars. China is obviously not doing well like us.’
Today will see the publication of the US Chicago National Activity Index for April, which is expected to ease at -0.33.
EUR/USD Outlook: European Elections and US-China Talks to Remain in Focus
US Dollar traders will be looking ahead to tomorrow’s speech by Jerome Powell, the Chair of the Federal Reserve, and with any bullish comments about the US economy this could see the USD/EUR exchange rate being to edge higher.
Euro investors, meanwhile, will be awaiting tomorrow’s flash consumer confidence figures for May, which are expected to fall by -7.9.
The EUR/USD exchange rate will be dictated by political developments this week, with the European Elections remaining in sight for many traders, and with any signs of any challenges to the integrity of the EU, this could weigh on sentiment in the single currency.