EUR/USD Exchange Rate Rangebound as Eurozone Heads into New Year ‘With More Confidence’
The Euro US Dollar (EUR/USD) exchange rate held steady this morning, with the pairing currently trading around US$1.112 after the release of December’s French Business Climate figure remained at a stronger-than-expected 102.
This report compares favourably with yesterday’s publication of Germany’s IFO Business Confidence report, which beat forecasts and rose to 96.3, improving optimism in the Eurozone’s largest economy’s recovery.
Clemens Fuest, the President of IFO, commented:
‘The German economy is heading into the New Year with more confidence.’
Looking ahead, today will see a speech by the European Central Bank’s Philip Lane, with any dovish comments about the bloc’s economy – due to Brexit or a slowing global economy – proving EUR-negative.
USD/EUR Exchange Rate Flat, ‘Greenback’ Investors Jittery After Trump Impeachment
The US Dollar (USD) failed to make gains on the Euro (EUR) today after ‘Greenback’ investors have become increasingly jittery over US President Donald Trump’s impeachment.
However, US markets will be mainly focusing on today’s economic data releases, with this afternoon seeing the release of the Philadelphia Fed Manufacturing Survey figure for December, which is expected to ease from 10.4 to 8.
Today will also see the release of the US Initial Jobless Claims figures for this month, which are forecast to fall to 225 thousand, potentially providing some uplift for the USD/EUR exchange rate as hopes for the American economy’s recovery return.
US-China trade developments will also continue to drive the US Dollar today.
US Dollar (USD) investors are, however, becoming increasingly sceptical over the ‘phase one’ trade deal, as concerns rise over the future relationship between the world’s two largest economies.
Keith Johnson, an Analyst at Foreign Policy Magazine, commented:
‘In other words, the likeliest outcome after two years of expensive tariffs, bankrupt farmers, and nervous markets is that the United States might just be able to get back to where it was in the last year of the Obama administration.’
EUR/USD Exchange Rate, Could Rising German Consumer Confidence Boost Euro?
Euro (EUR) investors will be awaiting tomorrow’s release of Germany’s GfK Consumer Survey figure for January. Any signs of improvement could further bolster confidence in the single currency as hopes for the Eurozone’s largest economy continue to improve.
Meanwhile, US Dollar traders will be looking ahead to tomorrow’s release of the US annualize GDP figure for the third-quarter, which is forecast to hold steady at 2.1%.
US-China trade developments will continue to drive the EUR/USD exchange rate this week, with any signs of a ‘phase one’ trade deal being inked by the two superpowers potentially weakening the safe-haven appeal of the US Dollar.