After US data produced disappointing results during Thursday’s European session, the US Dollar softened versus most of its major peers. The softer US Dollar enabled emerging-market currencies to flourish while the Pound strengthened thanks to positive house price data.
Euro to US Dollar (EUR/USD) Exchange Rate Forecast to Rally despite Greek Woes
The Euro to US Dollar (EUR/USD) exchange rate climbed by around 0.22% during Thursday’s European session.
Although geopolitical tension between Greece and Eurozone officials is far from abating, the single currency strengthened versus many of its major peers. This can be attributed to fears that recent declines were overdone, with the potential for a Grexit already priced-in to an extent.
The single currency also strengthened in response to an upbeat Survey of Professional Forecasters from the European Central Bank (ECB). Although inflation expectations had been pared back, the report showed positive growth projections over the next few years thanks to the lower-value Euro.
The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.0697.
The US Dollar softened versus many of its major peers after labour market data failed to impress. Although Continuing Claims came in under the median market forecast figure; Building Permits, Housing Starts and Initial Jobless Claims all failed to meet with the respective market consensuses. However, a better-than-expected Philadelphia Fed survey has softened the declination somewhat.
‘Housing’s not going to come back immediately — that doesn’t mean it’s not going to come back,’ said Lewis Alexander, chief economist at Nomura Securities International Inc. ‘I continue to believe the fundamentals for housing are supportive.’
Euro to US Dollar (EUR/USD) Exchange Rate Forecast to Hold Gains before US Inflation Data
Given the lack of influential domestic data to curb the trend, and with rate hawks fearing that the poor US labour data will delay rate hikes, the Euro to US Dollar (EUR/USD) exchange rate is likely to hold gains for the remainder of Thursday’s European session.
The Euro to US Dollar (EUR/USD) exchange rate was trending within the range of 1.0623 and 1.0768.
US Dollar to Indian Rupee (USD/INR) Edges Lower on Falling Oil Price
The US Dollar to Indian Rupee (USD/INR) exchange rate ticked lower by around -0.12%.
As explained above, the US Dollar softened versus many of its most traded currency rivals after domestic data produced mixed results erring towards negativity. The declination has been somewhat slowed, however, thanks to demand for safe-haven assets with the situation in Europe showing no sign of easing.
The US Dollar to Indian Rupee (USD/INR) exchange rate is currently trending in the region of 62.3040.
The softer US Dollar has been beneficial for emerging market currencies, and so the Indian Rupee advanced in response. A complete absence of domestic data, however, has seen the gains somewhat laboured.
Another contributing factor to the Rupee advance is oil prices, which have resumed bearishness, albeit exhibiting fractional declines thus far. The oil price downtrend can be attributed to swelling crude oil inventories despite a lack of demand.
US Dollar to Indian Rupee (USD/INR) Exchange Rate Forecast to Fluctuate
Given that oil prices are particularly volatile, and with the US data producing mixed results, the US Dollar to Indian Rupee (USD/INR) exchange rate has the potential to fluctuate over the course of Thursday’s European session.
The US Dollar to Indian Rupee (USD/INR) exchange rate was trending within the parameters of 62.2300 and 62.3950.
