Disappointing Eurozone Sales Stats Bring EUR/USD Exchange Rate Losses
The Euro (EUR) has slipped against the US Dollar (USD) today, hitting $1.15 on the interbank exchange rate.
This EUR/USD exchange rate decline has come from the morning’s Eurozone retail sales figures for July, which revealed slower sales activity for the monthly and annual readings.
The month-on-month sales figure fell from 0.3% growth to contraction at -0.2%, while annual sales fell from 1.5% to 1.1%, below the expected 1.3% printing.
Overall Eurozone Economic Growth Fails to Boost EUR/USD Exchange Rate
Today’s other Eurozone news has been more supportive for the Euro (EUR), although not by enough to enable a rise against the stronger US Dollar (USD).
August’s finalised Eurozone composite and services PMIs have both revealed growth during the month, although IHS Markit Chief Business Economist Chris Williamson has reduced the impact of this positive news by warning:
‘The [Eurozone] expansion is looking increasingly uneven and the business mood has become more unsettled during the summer.’
US Dollar to Euro (USD/EUR) Exchange Rate Ticks Higher on US-China Trade Tariff Fears
The US Dollar (USD) has risen slightly against the Euro (EUR) today, hitting an interbank exchange rate of €0.86.
This slight appreciation comes from concerns about worsening trade relations between the US and China, which have driven up demand for safe haven currencies like USD.
The US Dollar might still fall in value if additional tariffs are imposed against China, but for now the US currency is seen as a safe harbour amid an otherwise stormy currency market.
Euro to US Dollar Exchange Rate Forecast: Will Spate of Fed Speeches Bring EUR/USD Losses?
The Euro’s (EUR) losses against the US Dollar (USD) today could extend this evening, when several Federal Reserve policymakers will be giving speeches.
Officials including John Williams and Raphael Bostic will be speaking; both are voting members on the Federal Open Market Committee (FOMC) this year.
There could be a sharp contrast between the outlooks of these policymakers; while Mr Bostic is considered a dovish policymaker, Mr Williams is seen as more of a policy hawk who favours higher interest rates.
If both officials voice support for a near-term rate increase then the US Dollar could rise sharply as USD traders are still looking for two more rate hikes this year.
Beyond this, the US Dollar could also appreciate if Thursday’s US non-manufacturing PMI shows as-forecast growth during August.