The Euro to US Dollar (EUR/USD) exchange rate was trending within a narrow range on Tuesday morning.
Although German Retail Sales printed positively on Tuesday morning, the shared currency advance has been somewhat laboured. This is due to comments made by European Commission Vice President Valdis Dombrovskis, who said that Greece may require a third bailout deal when their current program expires.
The US Dollar, meanwhile, is generally holding steady after Monday’s data failed to impress. Given that the Federal Reserve stated that rate revisions would be subject to domestic data, many expect further delays to a benchmark rate increase.
The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1186.
Yesterday…
The Euro to US Dollar (EUR/USD) exchange rate was trending within a narrow range on Monday afternoon.
After European data printed positively, on the whole, the shared currency strengthened versus many of its major competitors. Further gains can be attributed to easing trader tension after Greece’s bailout extension was accepted.
The US Dollar, meanwhile, is holding a position of strength despite disappointing ISM Manufacturing. The disappointing score was countered by a positive result from the Markit Manufacturing PMI and as traders expect Federal Reserve policymakers to alter language with regard to rate revisions.
The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1192.
Euro (EUR) Exchange Rate Strengthens on Positive Data
European data produced mostly positive results on Monday which saw the single currency advance versus many of its competitors. Of particular significance were positive results from Eurozone inflation and unemployment data. However, there is some minor concern about data divergence in the Eurozone with German manufacturing bettering that of Italy, France and Spain.
Chris Williamson, chief economist at Markit, said; ‘The Eurozone manufacturing sector barely expanded in February, highlighting the malaise that still hangs over the region’s goods-producing economy as a whole. However, beneath the disappointing headline figure, different parts of the manufacturing economy are clearly moving at very different speeds, ranging from a Celtic boom to a Gallic slump.’
The Euro to US Dollar (EUR/USD) exchange rate dropped to a low of 1.1159 today.
US Dollar (USD) Exchange Rate Holds Gains despite Mixed Data
US data produced varied results which err towards negativity, but the US Dollar maintained a strong position versus many of its major rivals. This can be attributed to demand for safe-haven assets with oil prices dropping and the People’s Bank of China (PBOC) cutting rates.
Whilst the ISM Manufacturing PMI dropped beyond the median market forecast from 53.5 to 52.9, the Markit Manufacturing PMI slightly countered this with a rise from 54.3 to 55.1. ‘Even allowing for that disruption, a reading of 52.9 is no reason to panic,’ said Paul Ashworth, chief US economist at Capital Economics. ‘It still points to modest overall growth.’
Euro to US Dollar (EUR/USD) Exchange Rate Forecast to Hold Steady
Given the lack of data to provoke changes, the Euro to US Dollar (EUR/USD) exchange rate is likely to hold steady for the remainder of Monday’s trade. Tuesday could see EUR/USD changes with German Retail Sales data due for publication.
The Euro to US Dollar (EUR/USD) exchange rate climbed to a high today of 1.1240.
