The Euro to US Dollar (EUR/USD) exchange rate softened by around -0.53% on Friday morning.
With Greece’s debt crisis dominating trader focus, the shared currency softened versus the majority of its most traded currency competitors as traders await the Eurogorup meeting. Fears that the inability to find a utilitarian resolution will lead to a Grexit has overshadowed relatively positive domestic data publications.
The US Dollar, meanwhile, is generally edging higher versus most of its major peers thanks to dampened market sentiment. With the Greek situation hanging in the balance and with the crisis in Libya escalating, demand for safe-haven assets bolstered US Dollar gains.
The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1318.
Yesterday…
The Euro to US Dollar (EUR/USD) exchange rate softened by around -0.25% on Thursday afternoon.
After Greece proposed an extension of their loan agreement, the shared currency gained versus many of its major peers. However, once Germany had rejected the proposal the common currency slumped amid fears that Greece will be forced to exit the Eurozone.
The US Dollar, meanwhile, edged higher versus many of its most traded currency rivals thanks to dampened risk sentiment seeing heightened demand for safe-haven assets. Mixed results from domestic data had minimal impact on US Dollar movement.
The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1375.
Euro (EUR) Exchange Rate Ticks Lower on Potential Grexit
After Germany rejected Greece’s proposal of a loan extension, even after the European Commission approved the request, the single currency softened versus many of its major rivals.
Kathleen Brooks, research director at forex.com said; ‘The Greek crisis remains fluid, and the situation continues to change on a daily basis. Yesterday, the outlook was bleak until the ECB stepped in a boosted its emergency lending assistance to Greek banks. Today, the situation improved further on the back of news that the Eurgroup will meet on Friday, which is a sign that Greece may have shifted its negotiating position to a more Eurogroup-friendly stance. However, excitement is being contained after Germany said it would reject the deal proposed by Greece in its current form.’
The Euro to US Dollar (EUR/USD) exchange rate has fallen to a low of 1.1353 today.
US Dollar (USD) Exchange Rate Edges Higher on Safe-Haven Demand
Market sentiment dampened considerably on Thursday after Libya asked the United Nations to drop their arms embargo in order to combat Islamic State extremists. Trader risk-aversion caused heightened demand for safe-haven assets which caused the US Dollar to gain despite mixed results from domestic data.
‘We also reaffirm that if we fail to have arms provided to us and training provided for our army, this can only play into the hands of the extremists,’ stated Mohamed Elhadi Dayri. ‘This will help ramp up the activities in Libya, and this will have a negative repercussion on the entire region and, thereby, global security.’
Euro to US Dollar (EUR/USD) Exchange Rate Forecast to Fluctuate
With the situation between Greece and the Eurozone dividing trader opinion as to Greece’s future in the Eurozone, and with US data yet to be released, the Euro to US Dollar (EUR/USD) exchange rate is likely to fluctuate.
Friday should see heightened volatility thanks to several influential data publications pertaining to both the US and Europe.
The Euro to US Dollar (EUR/USD) exchange rate advanced to a high today of 1.1450.
