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The Euro to US Dollar (EUR/USD) Exchange Rate Forecast to Tick Higher despite Poor German Trade Balance

Euro Currency Forecast

The Euro to US Dollar (EUR/USD) exchange rate ticked higher by around 0.11% on Friday morning.

Although German Trade Balance declined beyond expectations, the Euro strengthened against the US Dollar, albeit fractionally. This can be attributed to dampened sentiment towards the North American asset after a Federal Reserve official talked down the prospect of a near-future rate revision.

The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1805.

Previously…

The Euro to US Dollar (EUR/USD) exchange rate is trending within a narrow range on Tuesday afternoon.

Having held in a position of strength for the majority of the European session, the US Dollar softened on Tuesday afternoon after domestic data failed to impress. The shared currency, meanwhile, is still trending lower versus most of its major peers whilst the Greek political situation weighs on Euro sentiment.

The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1891.

Euro (EUR) Exchange Rate Trending Lower on Greek Political Situation

Speculation surrounding the potential impact of a Greek exit from the Eurozone on the Euro  has seen the shared currency slump versus most of its major peers. This is despite better-than-expected French consumer confidence.

‘Instead of talking about a possible Grexit, we should focus on solving the investment problem Greece and other countries are facing,’ Mr. Verhofstadt said.

The Euro to US Dollar exchange rate has dropped to a low today of 1.1893.

US Dollar (USD) Exchange Rate Trending Lower on Data

After surging significantly, the US Dollar softened on Tuesday after its bullish run failed to end the oil price declination. ‘We may well see the market entering risk-off mode,’ stated analyst Takeru Kurokawa.. ‘Until now, oil price declines were prompting Dollar-buying, but now it seems like it’s viewed as a risk.’

To add to the declination was less-than-impressive domestic data. Of particular detriment was the Non-Manufacturing Composite which declined beyond the median market forecast of a drop from 59.3 to 58, with the actual result dropping to 56.2.

Euro to US Dollar (EUR/USD) Exchange Rate Forecast to Fluctuate

With the US Non-Manufacturing Composite due for publication later on Tuesday afternoon, there is a high possibility of Euro to US Dollar (EUR/USD) exchange rate volatility. Should the data print in line with, or exceed, expectations the Federal Reserve will come under pressure to act hawkishly in their next policy meeting.

The Euro to US Dollar exchange rate climbed to a high today of 1.1969.