The Euro US Dollar (EUR/USD) exchange rate has been mixed this morning as German GfK consumer confidence fell below market expectations, however a broad weakness in the US Dollar limits the Euro’s losses.
At the time of writing the EUR/USD pairing are trading around the $1.2188 level as USD investors await the latest initial US jobless claims.
Euro (EUR) Limits Losses on US Dollar Weakness
The Euro has been mixed for much of the morning as the latest German GfK consumer confidence indicator for June fell below market forecasts.
Though rising to -7 from -8.6 in May, the indicator missed market expectations of -5.2, though analysts at GfK believe the indicator will rise in the coming months.
Rolf Bürkl, GfK consumer expert commented on the latest consumer confidence indicator for June saying:
‘We are leaving the third wave behind us more and more, the incidences have been falling significantly for several weeks. We are also making great strides in vaccination.’
‘As a result, openings and a departure from strict lockdown are possible. At the moment this is primarily fueling economic optimism and creating a mood of optimism.’
US Dollar (USD) Firms on Upbeat Market Mood
The US Dollar has been dealing with a broad weakness in the currency this week, as an upbeat market mood and dovish Federal Reserve (Fed) limit the ‘Greenback’s’ appeal.
Many Fed speakers have this week dismissed the idea that interest rate hikes will be implemented sooner than expected as inflation pressures rise.
USD could see a resurgence this afternoon with the release of the second GDP estimate for Q1 from the US and the latest initial US jobless claims.
Forecasts are expected to show that US GDP grew 6.4% in the first quarter of 2021 as the country enjoyed a swifter economic recovery and fast-paced vaccine rollout.
More so, if initial US jobless claims continue to show a sustained fall the ‘Greenback’ could push back from its weakness.
Euro US Dollar Exchange Rate Outlook: US Personal Spending in Focus
For Euro traders, tomorrow’s focus will be the final Eurozone consumer confidence reading for May.
Although the indicator is expected to remain in contraction at -5.1 it the figure meets market forecasts it would be the highest reading in over2 years as the bloc’s economy begins to reopen from the coronavirus pandemic.
US Dollar investors will be looking towards the latest US personal spending for April which is forecast to have increased 0.5%, a slowdown from the 4.2% during March as many American households received their stimulus checks.