Currency News

Daily Exchange Rate Forecasts & Currency News

Euro Rate Today - The EUR/USD Exchange Rate Clears 14-month Low, EUR/GBP Pushes Back

September 11, 2014 - Written by Ben Hughes

The latest Euro (EUR) rate today was holding close to a 14-month low against the US Dollar (USD) on Thursday as weaker than forecast jobless claims data weighed on the American currency and as concerns over new sanctions against Russia put pressure on the single currency.

Data out of the United States weighed upon the US currency after it showed that the number of Americans filing for unemployment benefits increase unexpectedly to its highest level in two-months last week, breaking the steady pattern of downward trends towards the lowest level since the Great Recession.

Here's a quick recap on the latest exchange rates today:

The Pound to Euro exchange rate is trading up +0.06% at 1.25815 GBP/EUR.
The Euro to Pound exchange rate is trading down -0.06% at 0.79482 EUR/GBP.
The Euro to US Dollar exchange rate is trading down -0.01% at 1.29216 EUR/USD.
The US Dollar to Euro exchange rate is trading up +0.01% at 0.77390 USD/EUR.
The US Dollar to Pound exchange rate is trading down -0.05% at 0.61511 USD/GBP.

According to the Washington based Labour Department the number of US citizens filing for unemployment benefits increased by 11,000 to 315,000 in the week ending on September 6. The figure was the highest recorded since June 28 and was worse than the 300,000 figure widely expected by economists. The data reading took place during the week containing the Labour Day holiday.

‘Claims have been running around 300,000 for a couple of months now, so I would not regard this as deterioration in labour demand. It was during Labour Day holiday, so odds are that there are some seasonal adjustment problems. Underlying labour demand remains very firm, and certainly that is going to help consumer spending going forward,’ said Omair Sharif, US economist at RBS Securities Inc.

Advertisement
Despite the softer than forecast data the ‘Greenback’ remained supported as it continue to find strength from Monday’s San Francisco Federal Reserve report which indicated that the US Central Bank could raise interest rates sooner than the markets were expecting.

The Fed is expected to cut its asset purchase program by another $10 billion next Wednesday, which would keep it on track for winding up the program in October, and to start raising interest rates sometime in mid-2015.

The Euro meanwhile remained under pressure from the European Central Banks surprise decision to cut interest rates to a new record low and its introduction of new easing measures.

Weighing upon the single currency on Thursday however was news that the EU will impose new economic sanctions against Russia on Friday over that nation’s role in the Ukraine crisis. Investors are concerned that more sanctions will add to the economic difficulties facing the Eurozone economy and could have a negative effect on the wider global economy.

The new sanctions are expected to tighten access to Western loans, especially for big Russian state oil companies, and expand a blacklist of Russian officials subject to travel bans and asset freezes.

Like this piece? Please share with your friends and colleagues:

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.


TAGS: American Dollar Forecasts Currency Predictions Daily Curre Forecasts

Comments are currrently disabled