- EUR USD exchange rate falls to 1.06 – USD EUR trades at 0.94
- Euro interest limited after ZEW survey scores – Major Eurozone rise fails to excite investors
- US Dollar unsettled after Trump tweet – Lockheed Martin shares plummet after criticism
The Euro has found itself a poor option for investors over the course of the day, although it has at least reached a relatively flat exchange rate against rival the US Dollar.
This deterioration in demand for both currencies comes ahead of Wednesday night’s presumed Fed interest rate hike, which could break the stalemate and cause a brief USD rise against the flagging Euro.
(Last updated December 13th, 2016)
The US Dollar has been having a mixed day of trading so far, on account of Monday’s concerning market shifts triggered by President-Elect Trump.
Euro Exchange Rate News: Slight EUR USD Loss Comes despite Jump in Eurozone Confidence
The Euro US Dollar exchange rate has today declined by -0.2%, though the latest Eurozone news has actually been positive overall.
German and Eurozone ZEW surveys of economic sentiment have respectively remained at 13.8 and jumped from 15.8 to 18.1, against forecasts.
Given that a rise was also expected for the German sentiment score, however, investors may have been left disappointed overall.
Additional Eurozone data has concerned the Q3 employment change in the Eurozone, which has fallen on the year and the quarter.
USD EUR Exchange Rate Rises despite Prior Trump Market Upset
The US Dollar Euro exchange rate has managed to make a slight gain today.
The latest US developments have been broadly negative, with President-Elect Trump causing a repeat of the ‘Boeing Incident’ at the start of December.
Lockheed Martin has now fallen victim to Trump’s ire, with a single social media post criticising construction prices causing a -$4bn drop in the company’s shares.
The incident is another reminder of Trump’s ability to cause a massive shock in the markets with a careless remark, keeping them unsettled on the US Dollar.
Future EUR USD Forecast: Will Fed Rate Hike Provide Long-Term US Dollar Boost?
Looking to the future, the next major pairing announcement will come from the Eurozone on Wednesday morning.
The data in question is October’s Eurozone-wide industrial production figures, which are expected to show a slight decline on the year but a rise out of a negative range on the month.
US ecostats are expected over the afternoon and evening, and will start with the earlier November retail sales results.
On the month and the year, losses are forecast, though on the other side, the later Fed interest rate decision is widely expected to bring an interest rate increase.
This latter outcome could raise demand for the US Dollar considerably, although as such a result has been widely priced in already, any positive shifts against the Euro may prove temporary at best.
Current Interbank Exchange Rates
The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.06 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.94 today.