EUR/USD Exchange Rate Steady despite Weak Eurozone Data
The Euro US Dollar (EUR/USD) exchange rate is rangebound today and is currently trading within the region of €1.202.
The Euro (EUR) has struggled to make any gains on the US Dollar (USD) following the release of the Eurozone’s seasonally-adjusted industrial production figures for November, which showed a disappointing decrease of -1.7%.
These were also followed by the release of the Eurozone’s yearly industrial production figures for November which decreased well above expectations at -3.3%.
Bert Colijn, a Senior Eurozone Economist at ING, commented that this could dampen confidence in the European Central Bank maintaining its ‘forecast of 1.7% growth for the year’. Colijn further commented:
‘Doubts about the first rate hike will therefore only grow with an economy that does not seem to be able to catch a break and downside risks continuing to feature prominently in the global economy.’
The US Dollar has remained static against the Euro today, with the continuing partial US government shutdown affecting the US markets, with some US data releases on hold due to closure over President Donald Trumps’ demand for funding for the Mexican border wall.
However, the US Dollar failed to make any gains on the Euro this morning despite poor Chinese data releases heightening safe-haven demand in the ‘Greenback’.
Euro US Dollar (EUR/USD) Exchange Rate Static as Euro Investors Brace for UK Brexit Vote
French President Emmanuel Macron sought yesterday to transform France’s ‘yellow vests’ ‘anger into solutions’ in a bid to ‘build a new contract for the nation’, which has buoyed confidence in the Euro as the Eurozone’s third-biggest economy has recently been rocked by continuing protests.
The Euro has been generally hit by continuing signs of a slowing Eurozone economy, with last Friday seeing the release of Spain’s industrial output figures for November drop by -2.6%, further deflating confidence in the single currency.
Euro investors are also remaining cautious ahead of the UK’s Brexit vote which is due to take place tomorrow, with British Prime Minister Theresa May due to speak today in which she will attempt to gain support for her UK-EU withdrawal deal.
EUR/USD Outlook: Tomorrow’s Brexit Vote in Spotlight
EUR investors will be focusing on the outcome of the UK’s Brexit parliamentary vote tomorrow, with any signs that the UK will face a chaotic exit of the EU potentially weakening the single currency.
Tomorrow will also see the publication of the French year-on-year Consumer Price Index for December, which is expected to remain static.
Later on tomorrow, however, will see the European Central Bank President, Mario Draghi, deliver a speech, with any signs of bullishness potentially strengthening EUR.
Tomorrow, however, will see a slew of US data releases, with the most important being the yearly PPI figures for December.
‘Greenback’ investors, however, will be looking further ahead to Wednesday which will see the release of US retail sales excluding the automobile sector, with any signs of a decrease potentially buoying the EUR/USD exchange rate.