US Dollar to Euro (USD/EUR) Exchange Rate Forecast to Soften as Grexit Threat Cools
The US Dollar to Euro (USD/EUR) exchange rate softened by around -0.52% on Tuesday morning.
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News that the radically left-wing Greek political party, Syriza, gained office in the latest Greek elections saw the common currency slump across the board. However, fears that they would force a Grexit cooled after it was revealed that they would be part of a coalition after having just missed the grade in terms of votes. Although the coalition is still very much anti-austerity, the likelihood of a Greek exit from Europe cooled significantly.
The US Dollar, meanwhile, is trending lower versus many of its major peers as traders await Durable Goods Orders data and Consumer Confidence data.
The US Dollar to Euro (USD/EUR) exchange rate is currently trending in the region of 0.8833.
The US Dollar to Euro (USD/EUR) exchange rate softened by around -0.50% on Monday afternoon.
With a distinct lack of data to provoke volatility, and with trader focus dominated by European issues, the US Dollar is reacting to fluctuations in the wider market. Given that there will be several influential domestic data publications on Tuesday; today’s minimal US Dollar movement could be followed by upheaval tomorrow..
The Euro, conversely, strengthened versus the majority of its most traded currency rivals on Monday. This can be attributed to speculation that the new Greek coalition will make a Grexit more unlikely.
The US Dollar to Euro (USD/EUR) exchange rate is currently trending in the region of 0.8876.
US Dollar (USD) Exchange Rate sees Minimal Volatility on lack of Data
A distinct lack of domestic data has seen the US Dollar avoid intense volatility on Monday. Most of its movement can be attributed to fluctuations in the currency market, although a slight declination is as a result of the Dallas Federal Reserve Manufacturing Activity, which softened from 4.1 to -4.4 in January.
The US Dollar to Euro (USD/EUR) exchange rate has fallen to a low today of 0.8860.
Euro (EUR) Exchange Rate Gains on Pared Grexit Bets
In the wake of the news that anti-austerity party Syriza gained office in Greece, the Euro slumped versus its major peers. The declination was reversed, however, after it transpired that they would be part of a coalition. This eased bets that the Greece will leave the EU as such an important decision is often difficult to finalise in a coalition government.
‘We saw the Euro selling off initially, but now we’ve had a bit of a bounce,’ said Jeremy Stretch, London-based economist. The currency ‘moved such a long distance over a short period of time that maybe some people think it’s time to lighten positions. We had a fairly strong assumption of who was going to win the election so the next part is the key issue,’ he said, referring to Syriza’s negotiations with Greece’s creditors.
US Dollar to Euro (USD/EUR) Exchange Rate Forecast to Hold Losses
With traders reluctant to invest in the US Dollar ahead of Tuesday’s Durable Goods Orders and Consumer Confidence data, the US Dollar to Euro (USD/EUR) exchange rate is likely to hold gains for the remainder of Monday.
The US Dollar to Euro (USD/EUR) exchange rate climbed to a high today of 0.8975.