Despite the fact that German and Eurozone growth figures for the third quarter beat predictions, the Euro to US Dollar exchange rate has declined by around -0.18%. This is because the Gross Domestic Product figures showed snail-paced growth and only a large increase would have calmed calls for further stimulus from the European Central Bank. The US Dollar, meanwhile, has struggled to recover from Thursday’s slump as traders await domestic data on Friday afternoon.
The Euro to US Dollar exchange rate is currently trending in the region of 1.2452.
Euro (EUR) Softens on Cool Growth
The preliminary results for German and Eurozone Gross Domestic Product figures have eclipsed the respective median market forecasts, but growth is still slow which has stymied Euro gains. In addition, Italian GDP contracted which indicated a move towards recession.
Non-seasonally adjusted German GDP increased by 1.2%, a little higher than the 1.0% growth forecast. Seasonally adjusted yearly Eurozone GDP met with the previous growth of 0.8% despite predictions of a drop to 0.7%.
Australia’s Prime Minister Tony Abbott, stated; ‘The challenge for G20 leaders is clear – to lift growth, boost jobs and strengthen financial resilience. We need to encourage demand to ward off the deflation that threatens the major economies of Europe.’
The Euro to US Dollar exchange rate has fallen to a low today of 1.2424.
US Dollar (USD) Gradually Recovers From Dudley Comments
On Thursday, Federal Reserve Bank of New York President William Dudley stated that; ‘it still is premature to begin to raise interest rates–there remains slack in the labour market and the inflation rate is still too low.’
Dudley’s comments caused the US Dollar to slide against all of its major peers. However, a positive forecast for US Retail Sales data, due for publication on Friday afternoon, has seen the ‘Greenback’ (USD) gradually recover.
Euro to US Dollar (EUR/USD) Exchange Rate Forecast to Soften
Should the US retail sales data meet with economists’ forecasts, the US Dollar is likely to strengthen against its major peers. Therefore, the EUR/USD exchange rate is likely to decline.
The Euro to US Dollar exchange rate has reached a high today of 1.2477.
UPDATE
EUR/USD Exchange Rate Dives on US Retail Sales
The Euro to US Dollar exchange rate is currently trending in the region of 1.2415.
After US economic data printed positively, the Euro to US Dollar exchange rate has extended losses on Friday afternoon. Advance Retail Sales was forecast to increase from -0.3% to 0.2%, but the actual data reached 0.3%. Consumer spending is vital to the US economy, accounting for more than two-thirds of all economic activity. Given that retail sales make up a hefty one third of such spending, the Advanced Retail Sales figure acts as a measure of consumer demand before GDP is released.
US Dollar (USD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
US Dollar,
,Swiss Franc,0.9679,
US Dollar,,Euro,0.8057,
US Dollar,,Pound,0.6402,
US Dollar,,New Zealand Dollar,1.2773,
Swiss Franc,,US Dollar,1.0326,
Euro,,US Dollar,1.2400,
Pound Sterling,,US Dollar,1.5622,
New Zealand Dollar,,US Dollar,0.7834,
[/table]
