EUR/USD Exchange Rate Strengthened by Eurozone GDP Reading
The Euro US Dollar (EUR/USD) exchange rate is trending higher this morning as markets welcome the Eurozone’s latest GDP estimate.
At the time of writing the EUR/USD exchange rate is currently up 0.2%, with the pairing sitting close to a one-week high.
Euro US Dollar (EUR/USD) Exchange Rates Find Support from Eurozone GDP Figures
The Euro (EUR) appears to be on strong footing against the US Dollar (USD) this morning following the release of the Eurozone’s latest GDP estimate.
According to the latest reading published by European statistics agency Eurostat, the Eurozone economy expanded by 0.4% in the second quarter, in line with previous estimates as growth was supported by sharp rises in business and other investments.
EUR/USD Exchange Rate Strengthened by Eurozone GDP Reading
The Euro US Dollar (EUR/USD) exchange rate is trending higher this morning as markets welcome the Eurozone’s latest GDP estimate.
At the time of writing the EUR/USD exchange rate is currently up 0.2%, with the pairing sitting close to a one-week high.
Euro US Dollar (EUR/USD) Exchange Rates Find Support from Eurozone GDP Figures
The Euro (EUR) appears to be on strong footing against the US Dollar (USD) this morning following the release of the Eurozone’s latest GDP estimate.
According to the latest reading published by European statistics agency Eurostat, the Eurozone economy expanded by 0.4% in the second quarter, in line with previous estimates as growth was supported by sharp rises in business and other investments.
Euro area #GDP +0.4% in Q2 2018, +2.1% compared with Q2 2017 https://t.co/Uzd6t1aIwa pic.twitter.com/UOTtARfxAu
— EU_Eurostat (@EU_Eurostat) September 7, 2018
However slightly denting the single currency’s gains this morning were the annualised figures, with Eurostat revising its year-on-year estimate down from 2.2% to 2.1%.
This dip was mostly attributed to the ongoing slowdown in Eurozone export growth, with trade continuing to drag on the Eurozone’s growth amid rising concerns over global trade tensions.
Will US Payrolls Fuel Demand for the US Dollar (USD)?
At the same time the US Dollar (USD) appears to be in a holding pattern this morning as investors release of some high-impact US data later this afternoon.
USD investors are currently bracing for the publication of the latest US non-farm payroll data, which economists forecast will show that 191,000 people joined the US workforce last month, up from a more subdued 157,000 in July.
This robust expansion in payrolls led many analysts to also forecast that the US unemployment rate will also slide from 3.9% to 3.8% in August, striking its lowest levels since May and likely further bolstering demand for the US Dollar.
Strong labour figures in August will lend further support to the Federal Reserve to raise interest rates when its meets later this month and help to shape expectations that the Fed will seek to hike rates again in December.
EUR/USD Exchange Rate Forecast: ECB to Commit to Ending Stimulus by the End of 2018?
Looking ahead to next week’s session, movement in the Euro US Dollar (EUR/USD) exchange rate is likely to be on the European Central Bank’s (ECB) September policy meeting.
No policy changes are expected from the Bank this month, but the meeting could still result in the Euro trending higher should the ECB discuss the winding down of its quantitative easing programme by the end of 2018.
Conversely the bank may look to stay its hand in the face of growing trade uncertainty, leaving its stimulus programme to roll into 2019 and likely weakening the Euro.
Meanwhile USD investors are likely to be focused on the latest US CPI figures next week, with another robust inflation reading likely to add further support for the Fed’s current tightening cycle and leading to further gains in the US Dollar.
However slightly denting the single currency’s gains this morning were the annualised figures, with Eurostat revising its year-on-year estimate down from 2.2% to 2.1%.
This dip was mostly attributed to the ongoing slowdown in Eurozone export growth, with trade continuing to drag on the Eurozone’s growth amid rising concerns over global trade tensions.
Will US Payrolls Fuel Demand for the US Dollar (USD)?
At the same time the US Dollar (USD) appears to be in a holding pattern this morning as investors release of some high-impact US data later this afternoon.
USD investors are currently bracing for the publication of the latest US non-farm payroll data, which economists forecast will show that 191,000 people joined the US workforce last month, up from a more subdued 157,000 in July.
This robust expansion in payrolls led many analysts to also forecast that the US unemployment rate will also slide from 3.9% to 3.8% in August, striking its lowest levels since May and likely further bolstering demand for the US Dollar.
Strong labour figures in August will lend further support to the Federal Reserve to raise interest rates when its meets later this month and help to shape expectations that the Fed will seek to hike rates again in December.
EUR/USD Exchange Rate Forecast: ECB to Commit to Ending Stimulus by the End of 2018?
Looking ahead to next week’s session, movement in the Euro US Dollar (EUR/USD) exchange rate is likely to be on the European Central Bank’s (ECB) September policy meeting.
No policy changes are expected from the Bank this month, but the meeting could still result in the Euro trending higher should the ECB discuss the winding down of its quantitative easing programme by the end of 2018.
Conversely the bank may look to stay its hand in the face of growing trade uncertainty, leaving its stimulus programme to roll into 2019 and likely weakening the Euro.
Meanwhile USD investors are likely to be focused on the latest US CPI figures next week, with another robust inflation reading likely to add further support for the Fed’s current tightening cycle and leading to further gains in the US Dollar.
