Euro to US Dollar Exchange Rate Tumbles Following Fed Policy Meeting
The Euro US Dollar (EUR/USD) exchange rate hit a week low overnight after the Federal Reserve’s latest policy meeting.
The Fed announced that their key interest rate would remain unchanged for the time being, but a hawkish statement declared the US economy’s growth as ‘strong’, stoking US Dollar (USD) investor optimism.
In light of the Fed’s statement, investor confidence in the ‘Greenback’ is likely to remain sturdy barring any setbacks by other means, with some high-impact data being published on Friday.
Euro (EUR) Exchange Rates Stifled by Sub-Par Factory Activity Growth
The Euro (EUR) was unable to gain momentum yesterday with the release of the bloc’s manufacturing PMI for July.
The minor increase of 0.2 points in factory activity was one of the Euro Area’s (EA) slowest growth rates in over a year-and-a-half, and not even a one-point increase in Germany’s factory data was enough to lift economists’ confidence in the single currency.
EUR/USD Exchange Rate Forecast: Euro to Weaken Against Dollar Following Wealth of US Data
Speaking of manufacturing data, the US Dollar (USD) may receive a lift this afternoon when June’s factory orders are published.
A projected increase of 0.3% over last month’s figure could further reinforce USD gains made in the wake of yesterday’s Fed policy meeting.
All is not lost for the Euro (EUR), however, with Friday promising the bloc’s retails sales data for June.
Economists predict that the figure may increase by as much as 0.4%; a welcome jump over last month’s 0% showing.
Meanwhile, the US Dollar may see sizeable movement on Friday afternoon, with numerous sets of high-impact data due for release.
Analyst consensus is that the balance of trade for June is expected to slip further into the negative, but strong readings from non-farm payrolls may be enough to counteract any negative USD movement.
Furthermore, the US unemployment rate may see a fall from 4% to 3.9%, likely bolstering investor confidence in the US economy.