- Euro holds gains against USD – Positivity from Luxembourg GDP stats
- US Dollar slips after diving manufacturing index – Major loss seen instead of forecast gain
- ECB’s Draghi to speak in near-term – Remarks from Fed’s Fischer also due
The Euro has managed to make continued steady gains against the US Dollar during trading today, thanks to a consistently high level of investors optimism during trading.
In addition to being aided by the earlier Eurozone inflation rate stats, the Euro has also been boosted by more recent Luxembourg GDP figures for Q2, which have shown a growth rate rise on both the quarter and the year.
Elsewhere, the US Dollar has since dropped a number of its earlier advances, owing mainly to negative sentiment generated by the NY Empire State Manufacturing Index for October. This had been predicted to rise from -1.99 to 1.02, but instead fell further to -6.8.
The next source of input for both the Euro and US Dollar will be central bank speeches, coming shortly from the ECB’s Mario Draghi and the Fed’s Stanley Fischer, respectively.
(Last updated October 17th, 2016)
For the US Dollar, movements against peers have been positive overall, in the wake of last Friday’s remarks from Fed Chair Janet Yellen.
Euro Exchange Rate News: Inflation Rate Outcome Bolsters Demand for Single Currency
The Euro has jumped against its peers today, seeing gains of 0.2% against the US Dollar (EUR USD), 0.3% against the Pound (EUR GBP) and 0.8% against the Australian Dollar (EUR AUD).
The source of this latest support has been the morning’s finalised September inflation rate figures, which have gone above expectations on the month and met with positive forecasts in other fields.
Less supportively for the common currency’s prospects, August’s balance of trade for Italy has seen a surplus reduction from 7.80bn to 2.5bn, a worse result than the expected 3.85bn outcome.
US Dollar Euro Softens despite ‘Aggressive’ Stance Considered by Fed Chair Yellen
After a mix of US ecostats last Friday, the US Dollar has since managed to rise across the board at the start of trading this week.
This is likely due to a closing statement by Fed Chair Janet Yellen on Friday, where the policymaker mused over how it could require drastic policy moves to restore the US economy and prevent long-term damage.
Considering the possible effects of letting the economy ‘run hot’, Yellen stated that;
‘Increased business sales would almost certainly raise the productive capacity of the economy by encouraging additional capital spending, especially if accompanied by reduced uncertainty about future prospects’.
Future EUR USD Forecast: Euro may be Moved by ECB President’s Speech Today
The day’s remaining high-impact Eurozone announcements are expected to come from the European Central Bank (ECB), where official Yves Mersch and President Mario Draghi are expected to give speeches today, in the morning and afternoon respectively.
From the US, input is set to come from a range of sources, with the main focus being on industrial and manufacturing production in September, as well as a later speech from Fed Vice Chair Stanley Fischer.
Both the annual industrial and manufacturing production figures have positive forecasts for their outcomes, although only the manufacturing result is expected to climb from a negative to positive range.
Current Interbank Exchange Rates
The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.09 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.91 today.