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Euro to US Dollar (EUR/USD) Exchange Rate Forecast to Edge Higher ahead of US Confidence Data

US Dollar Currency Forecast

The Euro to US Dollar (EUR/USD) exchange rate strengthened by around 0.24% on Friday morning.

After German growth data printed above expectations, the single currency strengthened versus the majority of its most traded currency rivals. With many analysts expecting Eurozone GDP to match the previous growth, the common currency is likely to hold in a position of strength versus the majority of its competitors.

The US Dollar, meanwhile, is generally trending lower versus its major peers as a result of negative sentiment after a succession of disappointing data releases. Those invested in the US Dollar will be hoping Friday’s University of Michigan Confidence data will meet with expectations.

The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1425.

Yesterday…

The Euro to US Dollar (EUR/USD) exchange rate advanced by around 0.57% on Thursday afternoon.

After European officials made achingly slow ‘progress’ towards agreeing a utilitarian solution to the Greek debt crisis,  the shared currency rallied versus many of its most traded currency rivals.

The US Dollar, conversely, softened after domestic data printed poorly. With several recent data publications failing to hit the mark, speculation is mounting that the Federal Reserve will delay a benchmark rate hike for some time to come.

The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1372.

Euro (EUR) Exchange Rate Ticks Higher as Grexit Fears Ease

With several European officials positive that there will be an amicable resolution to the Greek debt crisis, the shared currency strengthened versus the majority of its most traded currency rivals. ‘We understand each other much, much better now than we did this morning,’ Greek Finance Minister Yanis Varoufakis said. ‘Europe manages to find agreements even if it’s at the last moment.’

Additional gains have been attributed to a recent run of successful data publications. ‘Overstretched short positioning alongside what has been generally improving economic data out of the Eurozone have put the breaks on downside momentum,’ said Christopher Vecchio.

Euro to US Dollar (EUR/USD) exchange rate dropped to a low today of 1.1302.

US Dollar (USD) Exchange Rate Softens on Disappointing Data

After US retail sales data failed to meet with expectations, the ‘Greenback’ (USD) dived versus the majority of its most traded currency rivals. Advance Retail Sales were forecast to drop by -0.4% in December following November’s -0.9% slide, but the actual result was a decline of  -0.8%.

‘Overall, the tone of this report was disappointing as it points to a weak start to spending activity this year, despite the significant boost to disposable income from lower gasoline prices,’ said Millan Mulraine, deputy chief economist at TD Securities in New York.

Additional US Dollar losses can be attributed to disappointing results from labour market data and business inventories data.

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

With the less-than-ideal US data causing speculation to mount with regards to the Fed delaying policy normalisation, the Euro to US Dollar (EUR/USD) exchange rate is likely to hold gains for the remainder of Thursday.

There is a high likelihood of EUR/USD volatility on Friday, with European growth data and US confidence data due for publication.

The Euro to US Dollar (EUR/USD) exchange rate advanced to a high of 1.1402 today.