Euro Exchange Rate News

Higher Eurozone Industrial Output Pushes EUR/USD Rate Up

Supportive inflation and industrial figures have brought an improvement in the Euro to US Dollar exchange rate today, triggering a clear pairing advance.

US Dollar movement has been negative, owing to market uncertainty about the future of US policy reforms.

Euro to US Dollar Rate Rises as Eurozone Production Picks Up

Beneficial Eurozone data has pushed the Euro higher against the US Dollar today; this has covered the German economy, as well as the overall Eurozone.

In the former case, German inflation has reportedly risen in November, in line with forecasts.

Higher inflation puts pressure on the European Central Bank (ECB) to consider tighter monetary policy, which could manifest in 2018.

Other Eurozone news that has pushed the Euro higher has come from overall output readings, which have shown higher industrial production in October.

Industrial output figures have risen by more than forecast, on both the month and the year.

USD/EUR Exchange Rate Drops after Shock Democrat Victory in Alabama

The US Dollar has fallen back against the Euro and most other peers today, following a surprising outcome to the Alabama special election.

This was called to fill Republican Jeff Sessions’ empty Senate seat and shockingly resulted in Democrat Doug Jones claiming victory.

Jones has made history with his win against Republican Roy Moore, as the Democrats haven’t held a Senate seat in the state for 25 years.

This has pushed the Republican majority in the Senate down to 51-49, which makes it even harder for Republican Senators to push through reforms.

That fact might have been at the root of the US Dollar devaluation, as signs of growing obstruction in law-making proceedings may hold back US economic development.

Giving a unifying victory speech after the vote was called, Jones said;

‘This entire race has been about dignity and respect. This campaign has been about the rule of law.

This campaign has been about common courtesy and decency and making sure everyone in this state is going to get a fair shake’.

Are Euro to US Dollar Losses Imminent on PMI Stats?

Although the Euro has advanced against the US Dollar today, this might not last until the end of the week.

Thursday morning is predicted to bring news of falling PMI activity in Germany and the Eurozone, which could rattle traders and lower confidence in the Euro.

The US Dollar is on track for a rise against the Euro over the afternoon and evening, if US economic forecasts prove accurate.

The afternoon will bring inflation figures for November, which are tipped to rise, while later on the Federal Reserve is expected to raise interest rates at its monthly meeting.

While a Fed rate hike has largely been priced in for months now, it could still raise confidence in USD.

Current Interbank EUR USD Exchange Rates

At the time of writing, the Euro to US Dollar (EUR USD) exchange rate was trading at 1.1752 and the US Dollar to Euro (USD EUR) exchange rate was trading at 0.8507.

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