The US Dollar to Euro (USD/EUR) exchange rate has softened by around -0.28% on Thursday as a result of trader profit locking after the US Dollar surged off the back of its safe-haven credentials. Positive German data has allowed the single currency to advance against some of its most traded rivals, although the gains are minimal as traders await the European Central Bank interest rate decision.
The US Dollar to Euro exchange rate is currently trending in the region of 0.7992.
Since Wednesday’s initial surge thanks to an impressive ADP jobs report, the US Dollar has softened considerably. This can be attributed to traders rushing to lock in their profits after the Non-Manufacturing Composite failed to meet with expectations.
It is likely that the ‘Greenback’ (USD) will continue to decline ahead of the labour market data due for publication on Thursday afternoon. Both Continuing Claims and Initial Jobless Claims are forecast to positively decline.
The US Dollar to Euro exchange rate has dropped to a low today of 0.7982.
In general, Thursday’s European data has had little effect on the single currency as traders prepare for the ECB rate decision and accompanying press conference, held by President Mario Draghi. Draghi has not been shy about introducing stimulus measures in order to shore up the flagging Eurozone economy, so there is the possibility of additional stimulus measures being introduced. However, with ten of the policymakers firmly against quantitative easing, the committee is likely to avoid any particularly dovish moves.
German economic data has been positive on Thursday, although the results have been somewhat overshadowed by the forthcoming rate decision. German Construction PMI ticked higher from 50 to 51.5, moving away from the level which separates growth from contraction. The German Retail PMI also impressed, having risen from the deficit 47.1 to the surplus 50.2.
US Dollar to Euro Forecast to Strengthen
Should the US labour market data meet with expectations, the US Dollar is likely to firm up against the majority of its currency rivals. Any hint of dovishness from the ECB, meanwhile, will see the common currency decline across the board.
The US Dollar to Euro exchange rate has advanced to a high today of 0.8021.
USD/EUR Exchange Rate Rallies on US Data
The US Dollar to Euro exchange rate is currently trending in the region of 0.8047.
After having softened on Thursday morning, the US Dollar has rallied against nearly all of its major peers after domestic labour market data printed impressively. Continuing Claims was forecast to drop to 2,365,000 from 2,387,000, but the actual result showed a positive declination to 2,348,000. Additionally, Initial Jobless Claims eclipsed the median market forecast of a drop from 288,000 to 285,000, with the actual result falling to 278,000.
The common currency, meanwhile, has declined against nearly all of its most traded currency competitors after the European Central Bank opted to hold interest rates at the ultra-low 0.05%.
USD/EUR Softens on German Data
The US Dollar to Euro (USD/EUR) exchange rate is currently trending in the region of 0.8068.
Friday’s German economic data has printed positively, initiating an upsurge for the common currency. Year-on-year German Industrial Production was forecast to increase from -1.9% to -0.6%, but the actual result showed a rise to -0.1%. German Trade Balance eclipsed the median market forecast of a rise from 14.0 billion to 19.0 billion, with the actual data reaching 21.9 billion. Additionally, Current Account, Exports and Imports all improved upon forecast figures.
In general, the US Dollar has gained against the majority of its most traded currency rivals. This is due to positive forecasts in payrolls data. ‘Should we see a positive payrolls report in line with our forecast, the Dollar should rise,’ said Takeru Kurokawa, an analyst in Tokyo at Ueda Harlow Ltd., which provides margin-trading services. ‘We could see Dollar climb toward 117 Yen.’
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,
,US Dollar,1.2409,
Euro,,Canadian Dollar,1.4187,
Euro,,Pound,0.7828,
Euro,,Australian Dollar,1.4555,
US Dollar,,Euro,0.8059,
Canadian Dollar,,Euro,0.7049,
Pound Sterling,,Euro,1.2778,
Australian Dollar,,Euro,0.6916,
[/table]
