Euro US Dollar (EUR/USD) Exchange Rate Rises as US Factory Orders Suffer Modest Fall
The Euro US Dollar (EUR/USD) exchange rate rose, and the pair is currently trading at an inter-bank rate of $1.1269.
Data released on Monday afternoon showed that US factory orders did not slip as far as forecast, however this could do little to buoy the US Dollar.
Factory orders fell by -0.5% in February, and revised data from January showed that orders stagnated at the start of 2019.
The US Census Bureau revealed that new orders for manufactured goods in February decreased by $2.6 billion.
Manufacturing, which accounts for around 12% of the US economy is losing momentum.
However, data revealed that after four consecutive months of contraction, shipments rose in February.
Euro (EUR) Buoyed on Shock Rise in Eurozone Investor Confidence
The Eurozone’s Sentix investor confidence improved from -2.2 to -0.3 in April, the highest reading since November.
According to the survey, this is thanks to positive signs from China, which likely buoyed the Euro (EUR) against the US Dollar (USD).
Commenting on the data, Managing Director at Sentix, Manfred Hübner said:
‘Economic observers are currently focusing their attention strongly on China. The signs in China are increasingly pointing to an upswing. Should there be an additional settlement in the trade dispute with the USA, the second economically robust region of the world economy, the European economy could also see a turnaround.’
Euro (EUR) Rises despite Disappointing German Data
Data released earlier this morning revealed that both German imports and exports slipped further than forecast in February.
Exports fell by -1.3%, and imports slid by -1.6%, however this did little to stop the single currency rising against the ‘Greenback’.
German exporters seem to be suffering from the current trade disputes, a slowing world economy and Brexit tensions.
Commenting on the disappointing data, Chief Economist at ING Germany, Carsten Brzeski said:
‘The export sector had been on a rollercoaster ride through all of 2018, with problems in emerging markets, trade tensions between the US and China, US protectionism, a possible cooling of the Chinese economy and increasing fears of a hard Brexit. There simply seem to be too many crises in global trade for the German export sector to defy all of them at the same time.’
Euro US Dollar Outlook: EUR/USD to Fall Following Strong US CPI Data?
Looking ahead to Wednesday, the European Central Bank (ECB) is due to release its interest rate decision and Monetary Policy Statement.
If the ECB leaves rates unchanged but the bank’s tone is generally dovish, mentioning the slew of disappointing data from the bloc’s largest economy, the Euro (EUR) could slide against the US Dollar (USD).
Wednesday will also see the release of the US Consume Price Index (CPI), which may cause the ‘Greenback’ to rise against the single currency.
If CPI excluding food and energy rises as forecast by an annual rate of 2.1% in March, the Euro US Dollar (EUR/USD) exchange rate could fall.
