The Euro to US Dollar (EUR/USD) exchange rate strengthened by around 0.63% on Tuesday afternoon, which can be attributed to improved German economic sentiment. The US Dollar, meanwhile, has generally declined against its major peers despite better-than-expected housing data.
The Euro to US Dollar exchange rate is currently trending in the region of 1.2522.
Euro (EUR) Gains on German Economic Sentiment
Tuesday’s European data has printed positively, allowing the single currency to appreciate against the majority of its most traded currency rivals. The German Economic Sentiment Survey reached a four-year high of 11.5, eclipsing the median market forecast of a rise from -3.6 to 0.5. The German Current Situation Survey also increased upon the previous figure, rising from 3.2 to 3.3. In addition, the Eurozone Economic Sentiment Survey advanced from 4.1 to 11.0.
The Euro to US Dollar exchange rate has dropped to a low today of 1.2447.
US Dollar (USD) Declines despite Positive Data
Tuesday’s North American data has printed reasonably positively. The NAHB Housing Market Index eclipsed the market consensus of a rise from 54 to 55, with the actual result reaching 58. However, the US Dollar has continued trending lower irrespective of domestic data. This can be attributed to a speech by Federal Reserve Governor Jerome Powell, who targeted a rise in inflation as a prerequisite for hiking the benchmark interest rate.
‘This year is on track to be the best year in job creation since 1999,’ Powell said in an interview on CNBC. ‘It makes sense to raise rates in 2015, perhaps in mid-2015. […] However, we would need to see progress toward that 2 percent target’ for inflation before the Fed lifts rates.
Euro to US Dollar (EUR/USD) Exchange Rate Forecast to Strengthen
As traders await the minutes from the Federal Reserve’s most recent FOMC meeting, the US Dollar is likely to soften. The EUR/USD exchange rate, therefore, is likely to strengthen ahead of the publication on Wednesday afternoon.
The Euro to US Dollar exchange rate has advanced to a high today of 1.2540.