The US Dollar to Euro (USD/EUR) exchange rate advanced by around 0.38% on Thursday morning.
After the Federal Open Market Committee (FOMC) minutes from the most recent policy meeting showed policymakers were divided as to whether to begin a rate hike in June, the US Dollar strengthened versus many of its major peers. The appreciation hasn’t been momentous, however, given that recent disappointing data eases pressure on the Federal Reserve to tighten policy in June.
The Euro, meanwhile, edged higher versus many of its most traded currency competitors after German trade surplus bettered estimates. The appreciation has been slowed, however, with the market waiting to see if Greece can meet their promise of repayment to the International Monetary Fund (IMF) on time.
The US Dollar to Euro (USD/EUR) exchange rate is currently trending in the region of 0.9308.
Yesterday…
The US Dollar to Euro (USD/EUR) exchange rate softened by around -0.30% on Wednesday afternoon.
Although European economic data produced relatively positive results and Athens assured that it did not ask for financial support from Russia, the shared currency declined versus many of its most traded currency competitors. This is as a result of predictions that the debt-riddled nation will default on the payment due to the International Monetary Fund (IMF) on April 9th.
The US Dollar, meanwhile, declined versus nearly all of its major peers on Wednesday. This can be attributed to speculation that the minutes from the most recent Federal Open Market Committee (FOMC) meeting will read generally dovishly.
The US Dollar to Euro (USD/EUR) exchange rate is currently trending in the region of 0.9211.
US Dollar (USD) Exchange Rate Softens ahead of Fed
After a recent succession of disappointing domestic data results, the US Dollar has generally softened versus the majority of its major peers over the past few weeks. Of particular disappointment to the Federal Reserve and rate hawks alike was much worse-than-anticipated labour market data.
Considering the Fed has stated that any benchmark rate revisions would be subject to domestic data, with a particular focus on the labour market, the likelihood is that the minutes due for publication later on Wednesday evening will have dovish overtones.
The US Dollar to Euro (USD/EUR) exchange rate has fallen to a low today of 0.9184.
Euro (EUR) Exchange Rate Declines on Greece’s IMF Repayment
As explained above, the IMF will request Greece’s first loan repayment on Thursday, and most analysts don’t expect the troubled nation to find the money in time. Although the IMF has stated that it will give an extra 30 days if Greece defaults and have promised flexibility when reviewing the proposed reform package, it still leaves little room for Greece to make a payment it seems unlikely ever to meet.
The unknowns regarding the fallout from defaulting on the loan have micrified European economic data results which printed relatively positively on Wednesday.
US Dollar to Euro (USD/EUR) Exchange Rate Forecast to Fluctuate
Given that the FOMC minutes are yet to be released, the US Dollar to Euro (USD/EUR) exchange rate has the potential to fluctuate over the course of Wednesday’s remaining trade. This is especially true given that the minutes could potentially read hawkishly considering the brunt of the recent disappointing data results came after the meeting was held.
Thursday’s US labour market data and German trade balance data is likely to have an effect on the US Dollar to Euro (USD/EUR) exchange rate.
The US Dollar to Euro (USD/EUR) exchange rate advanced to a high today of 0.9239.
