Euro (EUR) Exchange Rate Now
The Euro is currently trending higher against the US Dollar (EUR/USD) and fluctuating around the day’s opening levels against the Pound (EUR/GBP).
Although the appeal of the common currency had been dampened earlier in the week by German growth fears, the Euro managed to rally against the ‘Greenback’ on Wednesday.
The EUR/USD gains were partly enabled by the efforts of Chinese officials to support the direct conversion of Euros to Chinese Yuan. The deal would have the potential to bolster trade links between the Eurozone and China.
Additional Euro advances were made after the Federal Open Market Committee meeting minutes surprised expectations.
While investors had been expecting the Fed to adopt a hawkish tone, they instead stressed that the timeline for increasing borrowing costs hadn’t been brought forward and that the US economy still faces headwinds.
In the opinion of one industry expert; ‘The Fed is telling the market not to get ahead of itself and prematurely assume that interest rates will go up in mid-2015.’
It was added that the FOMC is asserting that ‘Europe and some emerging markets are having some issues worth watching and that, because of the strong Dollar, inflation will be tame for some time to come. They clearly aren’t going to rush into a tightening phase.’
The EUR/USD pairing hit a low of 1.2718
The US Dollar accordingly declined across the board and higher-risk currencies, like the Euro, were boosted.
The EUR/USD exchange rate held gains even as Germany’s trade data raised fresh concerns over the possibility of the Eurozone’s largest economy falling into recession.
Germany’s trade figures for August showed that the nation’s trade surplus narrowed from 23.5 billion Euros to 14.1 billion Euros due to a 1.3% slide in imports and a whopping 5.8% drop in exports.
The decline in exports was the steepest recorded since 2009.
After the German data was published the Euro to Pound (EUR/GBP) exchange rate pared earlier gains, moving from a high of 0.7895 to trend in the region of 0.7878.
EUR/GBP, EUR/USD Exchange Rate Forecast
If today’s US initial jobless and continuing claims figures show the increase in applications for unemployment benefits expected, the Euro to US Dollar exchange rate may consolidate gains during the North American session.
That being said, European Central Bank President Mario Draghi is also scheduled to speak in Washington today.
If the central bank chief adopts a dovish tone, mentions quantitative easing or attempts to talk down the Euro we forecast that the common currency could fall.
Draghi’s speech could have a similar effect on the EUR/GBP exchange rate.
The Euro to Pound pairing is unlikely to be much affected by the Bank of England’s interest rate decision.
The central bank is largely expected to leave policy unaltered and deliver no accompanying policy statement.
We will have to wait until the publication of the meeting minutes to see how the policymakers voted on the subject of interest rates.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.7876
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.2694
Euro Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,
,Pound Sterling,0.7876,
Euro,,US Dollar,1.2764,
Euro,,Canadian Dollar,1.4167,
Euro,,Australian Dollar,1.4374,
Euro,,New Zealand Dollar,1.6060,
US Dollar,,Euro ,0.7827,
Pound Sterling,,Euro,1.2680,
Canadian Dollar,,Euro,0.7055,
Australian Dollar,,Euro,0.6954,
New Zealand Dollar,,Euro,0.6222,
[/table]
