The Euro to US Dollar (EUR/USD) exchange rate edged lower on Wednesday by around -0.15%. This can be attributed to European Central Bank Chief Economist Peter Praet warning that lower oil prices makes quantitative easing more likely.
The Euro to US Dollar exchange rate is currently trending in the region of 1.2152.
Yesterday… The Euro to US Dollar (EUR/USD) exchange rate is trending within a tight range on Monday despite the fact that the Greeks failed to confirm a presidential candidate. The US Dollar is able to maintain a high exchange rate as demand by importers increases in order to pay year-end bills. The shared currency has softened fractionally, but the impact of the Greek vote is insignificant during holiday trading.
The Euro to US Dollar exchange rate is currently trending in the region of 1.2201.
Euro Exchange Rate Softens Fractionally on Greek Vote
After Greece’s Prime Minister, Antonis Samaras, failed to get his presidential candidate confirmed, the shared currency softened fractionally against most of its peers. The failure to confirm the presidential candidate has caused a snap general election due at the end of January. However, quiet trading during the holiday period has seen little impact from the news which would have caused the common currency to dive during ordinary trading.
Alastair McCaig, market analyst at IG, thinks the Greek vote will intensify the European debate over austerity. ‘Although this [vote] is a specific issue for Greece it will raise fresh fears over the fate of the Eurozone and the timelines for the possible implementation of a European version of QE. 2015 could see an escalation in the debate over austerity, with the same old north-south divide on what is proportional still raging.’
The Euro to US Dollar exchange rate slid to a low today of 1.2167.
US Dollar Exchange Rate Static on Quiet Trading
Despite the fact that the US Dollar strengthened across the board after posting better-than-expected third-quarter growth, the quiet market during the holiday period has seen little US Dollar movement on Monday.
The Dallas Federal Reserve Manufacturing Activity was forecast to soften a little from 10.5 to 9.0, but the actual result fell to 4.1. The significant declination, however, has had minimal impact on US Dollar movement whilst trading is quiet.
Euro to US Dollar (EUR/USD) Exchange Rate Forecast to Fluctuate
With the Greek vote due for completion at noon, the Euro to US Dollar exchange rate is likely to fluctuate. If the voters decide against Samaras’ candidate, the Euro will soften across the board. Similarly, should the Greek people confirm the electoral candidate; the shared currency should recover the losses from trader caution.
The Euro to US Dollar exchange rate advanced to a high today of 1.2221.
