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US Dollar to Euro Exchange Rate Rises with December US Interest Rate Hike Odds
Published: 18 Nov at 1 PM Tags: Euro Exchange Rate, Dollar Exchange Rate, Currency Exchange, Euro Crisis, Inflation,
US Dollar Euro Gains Increase after Fed Testimony
The US Dollar has managed to make steady gains against the Euro this week, and today has been no exception. Rising from a rate of 0.92 on Monday, the US Dollar has since climbed to 0.94 today and could well continue rising later on.
The latest source of support for USD amid ongoing Trump-linked uncertainty has been the Federal Reserve. Speeches and remarks from Fed officials of late have significantly raised hopes that a US interest rate will come in December, something that would likely send US Dollar demand soaring.
As well as policymakers backing this outcome, Fed Chair Janet Yellen has also hinted at an incoming rate hike while testifying to Congress, further firming opinions that this December will be a repeat of 2015’s historic interest rate increase.
Looking to the future, yet more Fed remarks are expected over Friday afternoon, while November 23rd will bring the Fed’s minutes for their November meeting. As this came before the later shock election result, however, it is unlikely that they will offer any gleanings besides a previous cautious attitude among Fed officials.
Overall Euro Weakness Recorded after Cautious Comments from ECB’s Draghi
For the Euro, the last day of the week has not been an especially good one, mainly owing to some dovish remarks recently made by European Central Bank (ECB) President Mario Draghi.
Delivering a keynote speech in Frankfurt, Draghi highlighted how low levels of inflation within the Eurozone were preventing the ECB from adopting a tightening stance on monetary policy.
Additionally, while expressing optimism about recent growth levels in the Eurozone, the ECB President closed on a cautious note by stating that low confidence in the single currency bloc was limiting overall positivity across currency union.
Ending on a boilerplate note, Draghi pledged to use all available instruments to try and get Eurozone inflation close to but below 2%.
Looking ahead, potential Euro volatility is likely on Tuesday’s Eurozone consumer confidence flash for November, which is currently expected to show movement from -8 to -8.1.
Any negative impact may be erased shortly afterwards on Wednesday morning when the Eurozone PMI flashes for November come in; these are expected to rise in the composite and manufacturing fields, but dip when it comes to services.
The US Dollar has managed to make steady gains against the Euro this week, and today has been no exception. Rising from a rate of 0.92 on Monday, the US Dollar has since climbed to 0.94 today and could well continue rising later on.
The latest source of support for USD amid ongoing Trump-linked uncertainty has been the Federal Reserve. Speeches and remarks from Fed officials of late have significantly raised hopes that a US interest rate will come in December, something that would likely send US Dollar demand soaring.
As well as policymakers backing this outcome, Fed Chair Janet Yellen has also hinted at an incoming rate hike while testifying to Congress, further firming opinions that this December will be a repeat of 2015’s historic interest rate increase.
Looking to the future, yet more Fed remarks are expected over Friday afternoon, while November 23rd will bring the Fed’s minutes for their November meeting. As this came before the later shock election result, however, it is unlikely that they will offer any gleanings besides a previous cautious attitude among Fed officials.
Overall Euro Weakness Recorded after Cautious Comments from ECB’s Draghi
For the Euro, the last day of the week has not been an especially good one, mainly owing to some dovish remarks recently made by European Central Bank (ECB) President Mario Draghi.
Delivering a keynote speech in Frankfurt, Draghi highlighted how low levels of inflation within the Eurozone were preventing the ECB from adopting a tightening stance on monetary policy.
Additionally, while expressing optimism about recent growth levels in the Eurozone, the ECB President closed on a cautious note by stating that low confidence in the single currency bloc was limiting overall positivity across currency union.
Ending on a boilerplate note, Draghi pledged to use all available instruments to try and get Eurozone inflation close to but below 2%.
Looking ahead, potential Euro volatility is likely on Tuesday’s Eurozone consumer confidence flash for November, which is currently expected to show movement from -8 to -8.1.
Any negative impact may be erased shortly afterwards on Wednesday morning when the Eurozone PMI flashes for November come in; these are expected to rise in the composite and manufacturing fields, but dip when it comes to services.
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Source: moneytransfer.co.uk