The Euro to US Dollar (EUR/USD) exchange rate dived by around -0.45% on Monday morning.
German economic data failed to meet with forecast figures on Monday morning, causing the shared currency to soften versus many of its major peers. Additional losses are as a result of fears that Greece’s proposal of how they will raise funds to pay off debt will be rejected by the Eurogroup.
The US Dollar, meanwhile, strengthened versus many of its major peers as traders await US data due for publication later on Monday. After having softened dramatically as a result of a string of disappointing data results, those invested in the US Dollar will be hoping that the coming week will see much improved results.
The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1327.
Previously…
At the close of last week, the Euro to US Dollar (EUR/USD) exchange rate was trending within a narrow range.
With the Greek debt crisis taking centre stage in trader focus, the Euro generally softened over the course of last week. Mixed data results aided the downtrend, with positive German data keeping the currency afloat.
The US Dollar also softened over the course of last week. Several disappointing data results caused analysts to drop growth estimates, and speculation that the Federal Reserve will delay a rate hike compounded negative sentiment towards the North American asset.
Euro (EUR) Exchange Rate Forecast to Fluctuate on Domestic Data
There will be several domestic data publications over the coming week with the potential to spark Euro movement. Perhaps of most significance will be the German inflation data. With oil prices affecting many advanced economies, the potential for inflation remaining in negative territory is high. This is evidenced by the German Consumer Price Index forecast figure of -0.2%.
German labour market data will also be highly influential in terms of the provocation of single currency movement. German Unemployment Rate is forecast to hold at 6.5%, but the German Unemployment Change is expected to soften from -9,000 to -10,000.
In addition to the data mentioned above; German Business Climate, German Current Assessment, German Expectations, German GDP, Eurozone Consumer Price Index, Eurozone Core CPI, German Retail Sales and German CPI will all be of interest to those trading with the common currency.
US Dollar (USD) Exchange Rate Forecast to Experience Volatility on Influential Data
For those invested in the ‘Greenback’ (USD) there will be several influential data publications with the potential to spark volatility. Perhaps of most significance will be the Consumer Price Index because it is forecast to drop into negative territory thanks to low oil prices. Durable Goods Orders data will also be of interest as it dropped significantly in December.
In addition to the data already outlined; Chicago Fed National Activity Index, Existing Home Sales, S&P/Case-Shiller Composite-20, Composite PMI, Services PMI, Consumer Confidence, Mortgage Applications, New Home Sales, Durables ex Transportation, Initial Jobless Claims, Continuing Claims, Annualised Gross Domestic Product, Personal Consumption, Chicago Purchasing Manager Index and the University of Michigan Confidence Survey will all be of interest to those trading with the US Dollar.
After a succession of negative data results eased pressure on the Federal Reserve to upwardly revise the benchmark interest rate, hawks will be hoping for positive data over the coming week to confirm the Fed as the frontrunner for rate hiking.
After a succession of negative data results eased pressure on the Federal Reserve to upwardly revise the benchmark interest rate, hawks will be hoping for positive data over the coming week to confirm the Fed as the frontrunner for rate hiking.
Inflation data will be of significance for both the Euro and the US Dollar as both are expected to produce negative results.
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1361 at the close of last week.
