The Euro to US Dollar exchange rate fell back today as better-than-forecast retail sales figures from the Eurozone did nothing to support the single currency.
At the time of writing the pair is currently trading around $1.1988.
Euro (EUR) Investors Remain Cautious Over Ongoing Coronavirus Pandemic
The Euro remained on the back foot today as the second wave of the coronavirus pandemic continues to cause havoc across the bloc.
Better-than-expected retail sales figures from the Eurozone did nothing to alleviate pressure from the Euro.
The Eurozone’s retail trade rose 2% from a month earlier in December 2020, beating market expectations of a 1.6 percent rebound.
The European Union is under intense scrutiny for Europe’s slow Covid-19 vaccine rollout, with investors remaining jittery over the state of the bloc’s economy following the second wave of the pandemic, with no signs of an end in sight.
US Dollar (USD) Gains as Safe-Haven Demand Increases
The US Dollar has been supported today as investors flock to buy the safe-haven currency as global coronavirus pandemic fears persist.
The USD exchange rates has benefitted from the weakness of the Euro for the majority of the week.
The US Dollar was also supported by initial jobless claims data from the end of January. The number of Americans filing for unemployment benefits declined to 779,000 in the week ending January 30. It is the third straight week of a fall in claims, and the lowest number since November.
Though claims remain much higher than before pre-pandemic levels, the steady decline shows that the US may be seeing a light at the end of the tunnel in terms of their coronavirus situation.
EUR/USD Outlook: Non-Farms Payroll Report to Guide Movement
The Euro to US Dollar exchange rate will continue to be driven by global coronavirus developments, with any negative news driving investors to buy into the safe-haven US Dollar.
Euro investors will be looking towards tomorrow’s German factory orders data from December 2020. Any improvement in the Eurozone’s largest economy’s factory sector would prove positive for the Euro.
US Dollar investors will be looking towards Friday’s US Non-Farm Payrolls data report.
The Non-Farm Payrolls report is a key indicator of the US’s economic health, and Friday’s job data could have a big impact on the Euro to US Dollar (EUR/USD) exchange rate as the report is forecast to show that more jobs have been added.