The Euro to US Dollar (EUR/USD) exchange rate edged higher on the morning of Christmas Eve. This is likely to be attributed to an unwarranted US Dollar surge after third-quarter growth impressed. The shared currency, meanwhile, is generally holding steady versus many of its major peers whilst traders settle for the holiday festivities.
The Euro to US Dollar exchange rate is currently trending in the region of 1.2194.
US Dollar (USD) Exchange Rate Softens on Unwarranted Surge
On Tuesday, the US Dollar appreciated across the board after third-quarter growth exceeded expectations. However, accompanying the growth figures were less impressive publications. Durable Goods Orders, for example, showed a massive declination from 0.3% to -0.7%. Compounding feelings that the uptick was unjustified is the fact that the growth figures are for the third-quarter which is somewhat outdated now we near the end of the fourth quarter.
With several US economic data publications due later this afternoon, the ‘Greenback’ (USD) is likely to be subject to changes. However, with the market exceptionally quiet, the data is unlikely to have as great an impact as it would do during regular trading.
The Euro to US Dollar exchange rate has dropped to a low today of 1.2167.
Euro (EUR) Exchange Rate Holding Steady on Quiet Trading
With a complete absence of domestic data to provoke volatility, the shared currency is holding steady against the majority of its most traded currency rivals. Given that the economic docket on Christmas Eve is particularly sparse, there is unlikely to be any significant movement.
Euro to US Dollar (EUR/USD) Exchange Rate Forecast to Fluctuate
The Euro to US Dollar exchange rate is most likely to be subject to fluctuations after US data prints. However, as discussed above, the quiet market sees little impact from data publications, so the fluctuations will be minimal.
The Euro to US Dollar exchange rate has reached a high today of 1.2200.
Yesterday…
The Euro to US Dollar (EUR/USD) exchange rate dived by around -0.38% on Tuesday. This is thanks to much better-than-expected US Gross Domestic Product data. The shared currency, meanwhile, is generally trending higher against many of its rivals after French growth figures met with the median market forecast. The slow pace of the currency market during the Christmas period, however, has seen minimal impact on movement in comparison to ordinary trading.
The Euro to US Dollar exchange rate is currently trending in the region of 1.2176.
Euro (EUR) Exchange Rate Advances on French Growth
In general, the currency market is slow moving as we approach Christmas and data, therefore, is less impactful than it would ordinarily be. However, Tuesday’s European data printed positively, giving support to the single currency. French Gross Domestic Product saw the finalised figure show third-quarter growth of 0.4%, in line with the market consensus. INSEE, the French stats body, confirmed that the growth was driven by household spending (+0.3%) and government spending (+0.6%).
The Euro to US Dollar exchange rate dropped to a low today of 1.2218.
US Dollar (USD) Exchange Rate Holding Steady ahead of Domestic Data
Whilst traders await the US economic data due for publication on Tuesday afternoon, the US Dollar is holding relatively steady against the majority of its most traded currency rivals. Of particular importance will be Durable Goods Orders figures as they serve as a useful forecast for US production to come.
A slight US Dollar appreciation can be attributed to the positively revised annualised US GDP estimate, which is forecast to increase from 3.9% to 4.3%.
Euro to US Dollar (EUR/USD) Exchange Rate Forecast to Decline
If US data meets with or exceeds expectations, the Euro to US Dollar exchange rate is likely to soften considerably. With that being said, however, quiet trading may see minimal impact from the data publications.
The Euro to US Dollar exchange rate has reached a high today of 1.2246.
