Euro to dollar forex forecast_ the eur usd exchange rate biased lower despite eurozone trade data dollar rate today in indian rupees
However, the US Dollar could soften this afternoon if the latest domestic data and commentary from Fed Chair Janet Yellen fails to boost the odds of an imminent Fed interest rate hike.
According to Lloyds foreign exchange analysts, “EUR continues to trade with a downward bias, although bears may be concerned that the move lower failed to accelerate following the break of 1.1010/00 support. Nzd usd forecast If we do see a drift through the recent lows, next support lies at 1.0940/00.”
The Euro strengthened on Thursday afternoon, as traders sold the US Dollar on global growth concerns, allowing its rival the shared currency to advance.
Underwhelming Chinese trade data published during the Asian session as well as speculation that Fed Chairwoman Janet Yellen may be too dovish to allow a December rate hike weighed on USD appeal on Thursday afternoon, giving it a break
from its bullish run this week.
The appeal of the Euro remained generally muted on Thursday morning, despite the finalised German Consumer Price Index for September confirming a stronger level of domestic inflation.
However, with the Fed’s latest meeting minutes failing to make a particularly strong impact on the US Dollar overnight, the EUR/USD exchange rate was able to make some limited gains.
According to Lloyds, “With the market’s attention potentially focused elsewhere (GBP and ZAR), EUR has quietly made noteworthy progress lower.”
“For some time our view has been that EURUSD should follow rate-spreads and retrace towards the 1.10-1.09 area, and this seems to be playing out.”
Wednesday’s session brought about further losses for the Euro to Dollar exchange rate as investors continued to pile into the US currency regardless of a lack of supportive data published throughout the day.
The MBA’s latest US mortgage applications report even disappointed, coming in at -6.0%, but the US Dollar held firm and continued its bullish run on high December Fed rate hike bets.
EUR/USD has lost almost two cents in value since this week’s opening levels of 1.1200. British pound to usd exchange rate The pair has tumbled downward all week as the US Dollar picked up momentum.
NB: the forex rates mentioned above, revised as of 27th Oct 2016, are inter-bank prices that will require a margin from your bank. Hex to binary converter Foreign exchange brokers can save up to 5% on international payments in comparison to the banks. Yen usd exchange rate Euro (EUR) Weakened Against US Dollar (USD) by Economic Stimulus Concerns
Despite consistently solid economic stats from the Eurozone throughout the week so far, the Euro itself has seen mixed demand, largely due to increasing strength in its rival the US Dollar (EUR USD).
Economic sentiment was up in October according to ZEW surveys, and Wednesday morning saw the publication of August’s Eurozone industrial production scores – which came in well above expectations. Stock outperform rating The monthly score improved from -0.7% to 1.6%, while the year-on-year score jumped from -0.5% to 1.8%, beating the expected score of 1.0%.
ECB official Yves Mersch stated on Tuesday that the Eurozone’s economic resilience to economic and political shockwaves is largely due to the ECB’s ultra-eased monetary policy.
While analysts have suspected the ECB may hesitate to ease policy further, this news dampened speculation that less easing meant a return to tighter policy.
US Dollar (USD) exchange rates have increased in value steadily and consistently since markets opened this week, gaining momentum across the board as analyst perceptions of the US’ economic outlook steadily improve.
Strong performance in debates and polling numbers from Democrat US Presidential nominee Hillary Clinton have left markets calmer once again this week. Eur usd chart investing Clinton’s consistency with President Barack Obama in economic and foreign policies have left her as the safe choice for economists.
This has also led to an increase in bets that the Federal Reserve will hike up US interest rates in December, as markets hope for increased stability in the US economy throughout November. Cool pictures of animals Market futures for a December rate hike are at 70% this week.
While Eurozone data has failed to give the Euro the ground it needs to hold against the increasingly strong US Dollar (EUR USD) this week, more optimistic economic news certainly won’t hurt Eurozone investors.
Thursday will see the publication of Germany’s final September Consumer Price Index (CPI) scores. Amazon prime rates Preliminary figures beat expectations, coming in at 0.7% year-on-year.
As always, higher inflation increases market moods as well as hopes that the European Central Bank’s (ECB) stimulus measures are working as intended. Cocoa futures market news This also means that worse-than-expected German inflation could see the Euro becoming even weaker.
This would also trigger further speculation on what the ECB can do to stimulate inflation if its current methods continue to have a minimal effect.
As for the US Dollar, it could continue to strengthen for the remainder of the week unless disappointing eco-stats or a sudden increase in support for Clinton’s opposition cause a drop in Fed rate hike bets.
“Dovish comments from ECB’s Mersch: He said current GDP forecasts rest on current supportive financial conditions and acknowledged that the euro area recovery remains ‘sluggish’.”
“Tapering is unlikely: His comments may signal that a scaling back of the monetary stimulus is not believed to be appropriate at this point.”
“Technical Analysis: EUR/USD fell sharply below 200MA and we expect the pair may trade inside 1.0782 (fibo 0.236) -1.1172 (200MA) with downside bias.”
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