Since Friday’s disappointing US employment report knocked the likelihood of the Federal Reserve tapering stimulus this month, the Euro has been posting small but steady gains against the ‘Greenback’. However, with the President of the Federal Reserve Bank of New York scheduled to speak tomorrow (and perhaps shed some light on the tapering timeline) the Euro has slipped against the US Dollar for the first time in three days.
The Euro to US Dollar Exchange Rate is currently trading in the region of 1.3256 as of 12:45 GMT
William C. Dudley, President of the New York Fed, said earlier in the year that with US economic growth likely to quicken in 2014 the tapering of bond purchases from the current $85 billion pace could be justified.
As currency strategist Kasper Kirkegaard noted; ‘There’s definitely some consolidation going on. We have to wait until the Fed’s meeting next week for the real catalyst.’
The EUR/USD pairing is likely to remain under pressure until the Federal Open Market Committee meets on the 18th and brings the tapering speculation to some kind of end.
The EUR/GBP Exchange Rate hit a low of 0.8370
In other Euro news, last week a series of better-than-forecast data releases for the UK ensured that the Pound enjoyed a bullish relationship with the Euro, and it seems the situation is repeating itself.
With the German consumer price index holding at 0.0 per cent in August, as predicted by economists, EUR/GBP movement has been driven by UK developments today. And with the UK’s unemployment rate declining to 7.7 per cent unexpectedly the Euro has posted a notable decline against its British counterpart.
News that UK jobless claims fell by over 10,000 more than forecast saw the EUR/GBP pairing briefly fall through the support level of 0.8400 and touch its lowest point since January.
The publication of the European Central Bank’s monthly report, due out tomorrow, is likely to be the biggest cause of home-grown Euro volatility this week. If it reiterates the caution adopted by ECB President Mario Draghi regarding the tenuous nature of the Eurozone’s economic recovery the common currency could end the week posting another five-day decline against the Pound.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3256 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8406 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4265 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6502 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7542 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1896 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7011 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6063 <
(Correct as of 12:45 GMT)
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