Despite choppy trading over the past week, the Euro has moved relatively sideways against the US Dollar (EUR/USD). On Tuesday the Euro to US Dollar (EUR/USD) exchange rate was trading between the boundaries of 1.1254 and 1.1345 as the situation in Greece continued. The Greek government submitted a new seven-page plan to creditors on Tuesday, a downscale from the previous 47-page reform proposal.
However, Austria’s finance minister Hans Jorg Schelling has said Greece shouldn’t expect much wiggle-room from creditors. Schelling stated: ‘I believe that the institutions and creditors have made so many concessions to the Greeks that I cannot imagine that there can be further concessions.’ Furthermore, Tuesday saw rumours surface that Greece was attempting to secure a temporary deal which could allow it funding until March 2016.
The Eurozone released its seasonally adjusted Gross Domestic Product (GDP) ecostats on Tuesday morning and the data remained in line with forecasts. On the year in the first quarter, growth remained at 1.0% while quarter on quarter GDP expansion resided at 0.4%. Economic growth in the first quarter was driven by household demand and investment.
Meanwhile, the US Dollar has been experiencing some choppy trading in a rather interesting few days for the currency. Friday had seen the US Change in Non-Farm Payrolls figure reach a healthy 280,000 in May, which increased hopes that the Federal Reserve may be stepping closer to hiking interest rates and bolstered the US Dollar.
But this week rumours that President Barack Obama suggested the US Dollar was overvalued sent the ‘Greenback’ lower. However, the speculation was later quashed when the President rebuffed accusations that he’d made any such remarks. Strategist Lee Hardman weighed in, saying: ‘It has been a volatile couple of days. Our view is still that relative fundamentals remain supportive for a stronger US Dollar, which is most evident in the near term against emerging market currencies. Against the other majors, the Dollar remains within a consolidation phase.’
Thursday’s forecast to be a significant day for the Euro to US Dollar (EUR/USD) exchange rate with the release of the US Advance Retail Sales stat. Meanwhile, Friday will see the Eurozone’s Industrial Production figure published, which is expected to slip from 1.8% to 1.1% on the year in April. The US University of Michigan Consumer Confidence number will follow later in the session. An increase in confidence from 90.7 to 91.4, as forecast, could see the US Dollar rally. The Euro to US Dollar (EUR/USD) exchange rate is presently trending in the region of 1.1261 with -0.17% market movement.