Euro to US Dollar (EUR/USD) Exchange Rate At Two-Week Low
Frankfurt (Dec 30) In spite of positive consumer confidence data for Germany the Euro is trading close to a two week low against the US Dollar.
The common currency softened against its US peer early into the European session as investors reacted to the news that top ratings agency Standard & Poor’s has stripped the European Union of its coveted AAA credit rating. The region now holds an AA+ rating with a stable outlook.
In response to the decision and the Euro’s subsequent fall currency researcher Callum Henderson stated; ‘It seems to have been a short-term negative for the Euro. That said, the times when ratings downgrades had a lasting impact on foreign-exchange rates seem to be a thing of the past.’
The EUR/USD pairing is still feeling the pressure following the Federal Open Market Committee’s decision to taper stimulus by 10 billion Dollars, so the news that consumer sentiment climbed modestly in Germany did little to boost the Euro.
The GfK German consumer climate index advanced from 7.4 to 7.6 despite economists expecting the measure to remain unchanged.
Separate figures showed that German producer price inflation dipped 0.1 per cent in November, as expected by economists.
The EUR/USD pairing is likely to experience additional movement today in response to US growth data and Eurozone consumer confidence figures.
Economists have forecast that the US growth report will confirm annualised quarterly expansion of 3.6 per cent.
If the result surprises to the upside, validating the Fed’s decision to taper stimulus, the Euro could extend its five-day decline against the US Dollar.
Meanwhile, the Eurozone consumer confidence measure is expected to show improvement, rising from -15.4 in November to -15 in December.
Next week, with European and North American markets closed on Wednesday and Thursday for Christmas celebrations, movement in the EUR/USD pairing could be inspired by US initial jobless claims and durable goods figures.
Euro (EUR) Exchange Rates
As of 10:30 GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3641 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8348 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5368 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6637 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4561 <