The Euro to US Dollar (EUR/USD) exchange rate has continued its downtrend today, coming in at -1.5%.
US Dollar mostly Stabilises after Second Chaotic Day at the Markets
The Euro (EUR) has lost all of the astronomic highs it saw yesterday, and is instead in a major downtrend against all but the Swiss Franc (EUR/CHF) today. This comes as the US Consumer Confidence score for August showed a great increase from 90.9 up to 101.5 earlier.
The US score, along with the optimistic words of Federal Reserve Bank of Atlanta President Dennis Lockhart last night has bolstered confidence in the ‘Buck’ (USD) today, and if patterns are to be believed, a similarly less-turbulent showing in the stock markets tomorrow will place the ‘Greenback’ back into its accustomed stable position as a safe-haven currency.
Earlier…
The Euro to US Dollar (EUR/USD) exchange rate has declined today as (relatively) stable stock markets have driven up demand for the ‘Buck’ (USD).
‘Greenback’ may expand current Gains further if Consumer Confidence comes in High
The Euro (EUR) has dropped by -0.3% against the US Dollar (EUR/USD) today and has seen major declines across the board elsewhere. This comes as (by comparison to yesterday) global stock markets are showing healthy growth. While any growth would be considered ‘healthy’ given the events of ‘Black Monday’, the colour green in western stock markets can only be a welcome sign today.
Although the Euro exhibited traits similar to a safe-haven currency yesterday, today’s reverse in demand in the pairing has shown that the US Dollar’s (USD) official status has beaten the Euro’s temporary gains yesterday. The US Dollar may further its advantage later on if the US Consumer Confidence survey score for August comes in with the predicted rise.
Earlier…
The Euro to US Dollar (EUR/USD) exchange rate has risen substantially today and the common currency (EUR) has also gained against almost all of its competitors as well.
Eurozone Confidence Continues to Rise despite Greece remaining Headless, EUR/USD Supported
The Euro to US Dollar (EUR/USD) exchange rate has risen by 0.9% today and despite the continuing turbulence in Greece, the common currency has advanced against all of its competitors, with the exception of a -0.4% loss against the Japanese Yen (EUR/JPY). The Euro has gained by over 1.8% against the Indian Rupee (EUR/INR) and has risen by more than 2.4% against the Australian Dollar (EUR/AUD), the New Zealand Dollar (EUR/NZD) and the South African Rand (EUR/ZAR).
The Euro’s strong performance today is a continuation of its state at the close of the European trading session on Friday, where the common currency soared due to a 0.3 point rise in the Eurozone Consumer Confidence figure for August. The Euro’s gains today are also reflective of a stable confidence in the future of the Eurozone, which comes in spite of the current leaderless state of Greece. Former Prime Minister Alexis Tsipras resigned on Thursday as a requirement of the election process and since then the Greek parliament has been without a head capable of implementing the required reforms and policies demanded by the terms of the bailout, which was agreed on Wednesday.
Lingering Interest Rate Hike Concerns Prevent Consistent Performance for ‘Greenback’ Today
The US Dollar (USD) has crashed by -0.9% against the Euro (USD/EUR) today. Against its other rivals the ‘Buck’ has had an extremely mixed performance, owing to the US Manufacturing PMI score for August showing a -0.9 point drop on Friday. The US Dollar’s losses include a -0.5% drop against the Polish Zloty (USD/PLN) and a -1.3% loss against the Japanese Yen (USD/JPY), while its gains include a rise of over 1% against the Indian Rupee (USD/INR), the Australian Dollar (USD/AUD) and the New Zealand Dollar (USD/NZD).
Confidence in the ‘Greenback’ wasn’t helped in the slightest by the declining US Manufacturing PMI score, which once again weighed the scales against the likelihood of a US interest rate increase this year.
Euro to US Dollar Exchange Rate Forecast: Lockhart Speech may allow USD/EUR Rebound but German GDP could Negate Potential Gains for ‘Greenback’
The Eurozone and the US both have key data releases due tomorrow, although a speech by Federal Reserve Bank of Atlanta President Dennis Lockhart tonight may start the ball rolling on a rally for the ‘Greenback’ (USD). The annual German Q2 GDP figure is in tomorrow and 1.6% has been predicted for the result. However, the US Consumer Confidence survey score for August is also due later in the day and if the predicted increase from 90.9 to 93.4 proves accurate, any morning gains by the common currency (EUR) may be short-lived.
Current EUR, USD Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1466 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8723 today.
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