Euro US Dollar (EUR/USD) Exchange Rate Falls despite Higher-than-Forecast US Jobless Claims
The Euro US Dollar (EUR/USD) exchange rate is currently trading down, exchanging at an inter-bank rate of $1.1300.
This morning, the German Harmonised Index of Consumer Prices rose in line with expectations, revealing an annual figure of 1.7%.
However, Germany’s Consumer Price Index performed below expectations, rising by 0.4% in February, and at an annual rate of 1.5%.
Meanwhile in the US, the number of people signing up for unemployment has risen to its highest level in a month.
229K Americans signed on for unemployment last week, which suggests the labour market is slowing although not to the extent of the near-stall in job growth data from February.
Safe-Haven US Dollar (USD) Rises as Trump in ‘No Rush’ to Complete US-China Trade Deal
On Wednesday, US President Donald Trump said that he was in ‘no rush’ to complete a trade deal with China.
This caused investors to jump into the safe-haven US Dollar (USD).
Speaking to reporters, Trump acknowledged that Chinese Premier, Xi Jinping may be wary of coming to a summit without an agreement in hand after seeing the conclusion of his summit with North Korean leader, Kim Jong Un.
Bloomberg reported that the meeting between Trump and Xi won’t occur this month, with it more likely to happen in April at the earliest.
However, the US President did think that there was a good chance that a deal would be made between the US and China.
Speaking to reporters at the White House, Mr Trump said:
‘I think things are going along very well – we’ll just see what the date is. I’m in no rush. I want the deal to be right […] I am not in a rush whatsoever. It’s got to be the right deal. It’s got to be a good deal for us and if it’s not, we’re not going to make that deal.’
Yesterday: US Dollar (USD) Slips as PPI sees Smallest Annual Increase in One-and-a-Half Years
The US Producer Price Index barely rose in February as it saw its smallest annual increase in more than one-and-a-half years.
The PPI edged up 0.1% as the index was lifted by the rebound in the cost of gasoline.
Meanwhile, positive data for the US could do little to stop the Euro US Dollar (EUR/USD) exchange rate rising over the course of Wednesday.
US non-defence capital goods orders (excluding aircraft) rose by a higher-than-forecast 0.8% in January.
Durable goods orders also rose by the most in six months.
The increased shipments in January also likely pointed towards solid business spending on equipment at the start of the year.
This data could cause economists to upgrade their low growth estimates for Q1 2019, however it is unlikely this will change the perception that the US economy lost momentum early this year.
Euro US Dollar Outlook: Will the EUR/USD Exchange Rate Slip as US Consumer Sentiment Rises?
Looking ahead to the end of this week’s session, it is likely that the Euro (EUR) will rise against the US Dollar (USD) following the release of the Eurozone’s Consumer Price Index.
If the CPI rises as forecast in February it could provide the Euro with an upswing of support.
Friday afternoon could see the pairing slide following the release of March’s preliminary US Michigan Consumer Sentiment Index, which is forecast to rise.
If consumer sentiment rises from 93.8 to 95.3 or higher, it could cause the Euro US Dollar (EUR/USD) exchange rate to slide.