Euro (EUR) Exchange Rate Predicted to Edge Higher against the ‘Greenback’ (USD) after Eurozone Growth Betters Estimates
The Euro to US Dollar (EUR/USD) exchange rate gained by around 0.3% on Tuesday afternoon.
Despite the fact that China’s equity market declined, the shared currency is generally trending lower versus most of its currency rivals. The lack of demand for safe-haven assets can be linked to speculation that China’s economic struggles will cause the Federal Open Market Committee (FOMC) to delay a benchmark rate increase. In addition, China’s Trade Surplus advanced despite a slump in both exports and imports.
European economic data produced a mixed-bag of results on Tuesday. One particularly positive publication was second-quarter Eurozone Gross Domestic Product which came in at 1.5% on the year; bettering the median market projection of 1.2%. On a quarterly basis, Eurozone GDP advanced by 0.4% which eclipsed the market consensus of 0.3% growth. However, German Trade Balance in July saw the surplus narrow beyond expectations.
The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1194.
US Dollar (USD) Exchange Rate Forecast to Soften against the Single Currency (EUR) ahead of US Labour Market Conditions Index Change
After US markets reopened following Labour Day celebrations, the US Dollar declined versus many of its peers. The depreciation can be linked to mounting pessimism regarding the timing of a Federal Reserve benchmark rate hike. With China’s economic situation showing no signs of improvement, Beijing’s intervention having minimal impact and China’s equity market declining; many fear that the Federal Open Market Committee (FOMC) will delay liftoff into the first half of 2016.
US economic data, due for publication later during Tuesday’s North American session, has the potential to provoke changes for the ‘Buck’ (USD). August’s Labour Market Conditions Index Change is predicted to improve from 1.1 to 1.5. July’s Consumer Credit is predicted to cool from $20.740 billion to $18.600 billion.
The Euro to US Dollar (EUR/USD) exchange rate dropped to a low of 1.1152 during Tuesday’s European session.
Euro to US Dollar (EUR/USD) Exchange Rate Forecast to Hold Steady ahead of US Data
With traders awaiting US data, the Euro to US Dollar (EUR/USD) exchange rate is likely to hold steady. With a complete absence of European economic data on Wednesday, the shared currency is likely to see movement as a result of changes in market sentiment. US Mortgage Applications has the potential to provoke changes for the US Dollar, although market sentiment and the situation in China have the potential to overshadow domestic data publications.
The Euro to US Dollar (EUR/USD) exchange rate climbed to a high of 1.1230 during Tuesday’s European session.
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