UPDATE
The Euro to US Dollar (EUR/USD) exchange rate edged higher by around 0.2% on Thursday morning.
In response to a positive result from German construction output data the Euro strengthened versus a number of its major peers. The German Construction PMI advanced from 55.5 to 57.9 in January. Later this morning the German and Eurozone Retail PMIs should provoke Euro volatility.
Meanwhile the US Dollar ticked lower versus most of its major peers as safe-haven demand cools. Rising Asian stock prices has seen trader risk appetite improve. US labour market data and the final figure for December’s Durable Goods Orders report should cause US Dollar movement today.
The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1116.
Yesterday…
EUR/USD Conversion Rate Predicted to Trend Higher After Eurozone Data Disappointed
The Euro to US Dollar (EUR/USD) exchange rate advanced by around 1.3% on Wednesday afternoon.
Euro-area economic data produced mostly disappointing results today which caused the single currency to soften versus many of its major peers. Of particular disappointment was Italian, French and German Services PMIs which all failed to meet with economists’ projections. However, losses were slowed somewhat after Eurozone services growth held in line with predictions at 53.6. Another particularly disappointing European ecostats was Eurozone Retail Sales which failed to meet with the median market forecast 1.5% growth in December, with the actual result showing 1.4% growth.
‘Growth and inflation have clearly failed to pick up over the past year despite the renewed stimulus efforts from the ECB,’ said Chris Williamson, chief economist at Markit. ‘This raises the question of whether existing stimulus has simply been insufficient, or whether monetary policy is proving ineffective.’
The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1056.
USD/EUR Conversion Rate Predicted to Hold Steady ahead of US ISM Non-Manufacturing Composite
The US Dollar softened versus many of its currency rivals on Wednesday morning thanks to renewed demand for high-yielding assets. After data pertaining to China showed services growth in the world’s second-largest economy eclipsed expectations, trader risk-appetite improved enormously which has seen reduced demand for the safe-haven US Dollar.
Later today, the ISM Non-Manufacturing Composite is very likely to provoke significant US Dollar volatility. Non-Manufacturing output is predicted to slow from 55.8 to 55.2 which could cause the US Dollar to decline and weigh on future Federal Reserve rate hike bets.
‘A slowdown in the ISM Non-Manufacturing survey may produce headwinds for the greenback and spur a near-term rally in EUR/USD as fears of a slowing recovery dampens bets for a Fed rate-hike in the first-half of 2016,’ stated DailyFX.
The Euro to US Dollar (EUR/USD) exchange rate dropped to a low of 1.0902 during Wednesday’s European session.
Euro to US Dollar (EUR/USD) Exchange Rate Volatility Forecast on Significant Ecostats
There will be a number of influential European and North American data publications over the coming few days with the potential to provoke changes for the Euro to US Dollar (EUR/USD) exchange rate. As mentioned above, today’s US ISM Non-Manufacturing Composite will be very likely to initiate EUR/USD movement.
Thursday will see a speech from European Central Bank (ECB) President Mario Draghi as well as January’s Eurozone Retail PMI. There will also be a number of US labour market data publications on Thursday with the potential to initiate EUR/USD changes.
Friday contains perhaps the most influential domestic data publications. For those invested in the Euro, German Factory Orders data will be of interest. However, US data will dominate trader focus with Trade Balance, Unemployment Rate and Change in Non-Farm Payrolls due for release.
The Euro to US Dollar (EUR/USD) exchange rate reached a high of 1.1080 during Wednesday’s European session.
