UPDATE
The Euro to US Dollar (EUR/USD) exchange rate was trending within a limited range on Monday morning.
After Alexis Tsipras was re-elected Prime Minister of Greece, the shared currency strengthened versus many of its peers. The appreciation is the result of easing fears that the deal made between Tsipras and creditors would crumble under new leadership. The common currency gains have been slowed, somewhat, after German Producer Prices failed to meet with expectations in August.
Now that traders have digested the dovish Federal Reserve policy outlook, the US Dollar recovered ground against most of its major peers. August’s Existing Home Sales data, due for publication later on Monday afternoon, has the potential to provoke volatility for the North American asset.
The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1302.
Previously…
Euro (EUR) Conversion Rate Predicted to Fluctuate on Volatile Market Conditions
UPDATE
The Euro to US Dollar (EUR/USD) exchange rate was trending within a limited range on Monday morning.
After Alexis Tsipras was re-elected Prime Minister of Greece, the shared currency strengthened versus many of its peers. The appreciation is the result of easing fears that the deal made between Tsipras and creditors would crumble under new leadership. The common currency gains have been slowed, somewhat, after German Producer Prices failed to meet with expectations in August.
Now that traders have digested the dovish Federal Reserve policy outlook, the US Dollar recovered ground against most of its major peers. August’s Existing Home Sales data, due for publication later on Monday afternoon, has the potential to provoke volatility for the North American asset.
The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1302.
Previously…
The Euro to US Dollar (EUR/USD) exchange rate softened by around -0.2% towards the close of Friday’s European session.
Since it emerged that China’s economic growth is slowing and the Shanghai Composite Index is struggling, market conditions have been particularly changeable. After markets were roiled in the wake of the Federal Open Market Committee (FOMC) decision to hold the cash rate, volatile changes in sentiment are also likely to occur over the coming week’s trade. With the Euro’s new-found safe-haven credentials, market sentiment has become increasingly important for Euro trade, and a burden for the European Central Bank (ECB). ECB official have expressed concerns that Euro overvaluation could warrant looser monetary policy.
There will be several domestic data publications over the coming week with the potential to provoke changes for the common currency. Eurozone Consumer Confidence, German Manufacturing PMI, German Services PMI, German Composite PMI, Eurozone Manufacturing PMI, Eurozone Services PMI, Eurozone Composite PMI, German IFO Business Climate, German IFO Current Assessment, and German IFO Expectations will all be of interest to those trading with the single currency.
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1377 during Friday’s European session.
US Dollar (USD) Exchange Rate Forecast: Domestic Data to Provoke Volatility
Once traders have digested the dovish Federal Reserve policy outlook following Thursday’s interest rate decision meeting, most experts believe that the US Dollar will revert to appreciation given that policy divergence is still wide between the Fed and other major central banks. With most traders also betting that the European Central Bank will look to expand quantitative easing, the US Dollar is likely to find additional support.
Given that hawks are looking for any clues as to the timing of a Fed rate increase, domestic data is likely to be highly significant. Of particular importance will be August’s Durable Goods Orders which is predicted to contract by -2.2%. Existing Home Sales, House Price Index, MBA Mortgage Applications, Markit Manufacturing PMI, Initial Jobless Claims, Continuing Claims, Durables ex Transportation, New Home Sales, Annualised Gross Domestic Product, Personal Consumption, Gross Domestic Product Price Index, Core Personal Consumption Expenditure and the US Services PMI will all have the potential to spark change for the ‘Greenback’ (USD).
The Euro to US Dollar (EUR/USD) exchange rate was trending within the range of 1.1369 to 1.1460 during Friday’s European session.