With negative trader sentiment towards the ‘Greenback’ (USD) mounting, the Euro to US Dollar (EUR/USD) exchange rate advanced by around 0.14% on Monday. Since Friday’s US economic data showed a smaller increase in Non Farm Payrolls than forecast, the ‘Buck’ (USD) has softened against its major peers. A slightly better-than-expected European economic data publication on Monday, meanwhile, has aided the common currency’s appreciation.
The Euro to US Dollar exchange rate is currently trending in the region of 1.2471.
Euro (EUR) Gains on Investor Confidence
Although there hasn’t been a great deal of domestic data to support a Euro uptrend, the solitary publication has printed positively. Eurozone Investor Confidence avoided the market consensus of a drop from -13.7 to -13.8, with the actual data reaching -11.9.
Improved sentiment towards the world’s second-largest economy has also helped the Euro gain against many of its most traded currency rivals. China’s data showed an improvement in the nation’s trade balance, allowing the common currency to benefit from the important Europe-China trade relationship.
The Euro to US Dollar exchange rate has dropped to a low today of 1.2451.
US Dollar (USD) Softens on Payrolls Hangover
Friday’s disappointing US data was such that the US Dollar has been on a bearish run ever since. A declination in US payrolls data has caused futures traders to delay bets regarding the timing of a Federal Reserve rate hike. ‘The disappointing nonfarm payrolls data have given the market an opportunity – especially for a lot of investors in Asia – to take profits off the table from the Dollar’s strength,’ said Desmond Chua, a strategist at CMC Markets in Singapore.
Euro to US Dollar (EUR/USD) Forecast to Strengthen
With little by way of economic data to curtail the US Dollar downtrend, the EUR/USD exchange rate is likely to continue to advance. However, the European Central Bank is soon to announce its Covered Bonds purchases which could throw up some unexpected results.
The Euro to US Dollar exchange rate has reached a high today of 1.2510.
UPDATE
EUR/USD Exchange Rate Softens on Potential Stimulus
The Euro to US Dollar exchange rate is currently trending in the region of 1.2428.
The single currency has declined against nearly all of its major peers after bets increased that the European Central Bank will introduce more severe stimulus measures to shore up the flagging Eurozone economy.
Andrew Bosomworth, a senior portfolio manager at Pimco, the world’s largest bond investor stated; ‘The ECB is trying all these different tools to prevent deflation, but if they fail, what’s left is only one tool – sovereign QE.’
Meanwhile, the US Dollar has gathered momentum after traders pared back the declination on fears of unjustified depreciation.
UPDATE
EUR/USD Exchange Rate Dives on Dollar Rally
The Euro to US Dollar exchange rate is currently trending in the region of 1.2408.
With a complete absence of European data on Tuesday, the common currency is likely to experience changes as a result of foreign currency movement. The single currency has extended losses against the US Dollar thanks to traders boosting the flagging North American asset amid fears of an unjustified downtrend.
After having enjoyed a healthy surge against the majority of its most traded currency rivals, the US Dollar is now holding steady as a result of traders not wishing to see another unwarranted exchange rate at the other end of the scale.
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,0.9666,
US Dollar,,Euro,0.8036,
US Dollar,,Pound,0.6300,
US Dollar,,New Zealand Dollar,1.2871,
Swiss Franc,,US Dollar,1.0338,
Euro,,US Dollar,1.2441,
Pound Sterling,,US Dollar,1.5866,
New Zealand Dollar,,US Dollar,0.7769,
[/table]
