The Euro has been in low demand against its usual peers today, with the biggest Eurozone ecostats doing little to inspire confidence in the single currency.
- EUR USD trades at 1.12 – Uncertainty seen after prior inflation results
- Euro unsettled after slowing wage growth – Italy saw trade surplus jump
- US Dollar steadies after Clinton returns to presidential race – Illness concerns put on ice
- European Council to talk security, anti-terrorism – US inflation and Uni. Michigan confidence stats due
The US Dollar has been trading favourably, thanks to a supportive rebalancing of the race to become President.
Euro Exchange Rate News: Euro Soft as Wage Growth Slows and Italian Trade Balance Rises
The Euro has failed to make much positive movement today, having lost out against most of its usual peers by a small amount.
This lack of confidence among Euro investors has largely been sparked by the morning’s Eurozone data, which has included the Q2 wage growth slowdown on the year and a shift in the labour cost index over the same period from 1.6% to 1%.
Italy has brought positivity to the table, with the July trade surplus of 4.66bn rising to 7.80bn.
US Dollar Exchange Rates Remain Stable as Clinton Returns to Campaigning
The US Dollar has managed to advance by a small amount against the Euro (USD EUR) today, coming in at 0.89 against the single currency. This somewhat positive performance has been echoed against many of the US Dollar’s other peers, while exceptions have included rises of 0.2% against the Swiss Franc (USD CHF) and 0.3% against the Pound (USD GBP).
No US economic data has come out yet today, therefore the latest appreciation for the US Dollar has stemmed instead from the political sphere, where the US Presidential Election has gotten back on track with the return of Hillary Clinton to the race to the White House.
Clinton had previously taken a few days off due to a battle with pneumonia; something that raised serious concerns among investors due to the chances of Donald Trump taking the presidency uncontested in her absence. Now back on the campaign trail, Clinton has voiced her determination for victory, which has reassured investors and boosted the US Dollar by extension. Speaking after her return, Clinton proclaimed;
‘People accuse me of all kinds of things…but nobody ever accuses me of quitting and I will never give up, I’ll never walk away, no matter how tough the going gets’.
Future EUR USD Forecast: European Council Meeting due ahead of US Inflation Rate Results
A European event taking place over the course of the day is likely to have a continuing impact on the value of the Euro; this will be the European Council meeting in the Slovakian capital of Bratislava.
While the EC is expected to leave the contentious issue of ‘Brexit’ negotiations off the table for now, more universal issues such as promoting improved border security in the EU and expanding counter-terrorism operations are expected to be discussed.
More tangible news is due from the United States, where the early afternoon will bring the nation’s August inflation rate figures, as well as the September University of Michigan consumer sentiment result.
Core inflation is predicted to dip on the year, while for the non-core printings, rises have been forecast on both the month and the year.
For the preliminary sentiment score, a minor decline from 89.8 points to 89.5 has been forecast.
Current EUR USD Exchange Rates
The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.1230 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.8907 today.