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Forex Exchange Rates Today: American Dollar, Euro and Pound Exchange Rate Roundup Sep 29 to Oct 3 2014

October 5, 2014 - Written by James Fuller

Forex Rates Today: The Euro exchange rate (Currency:EUR) began last week weaker against the Pound Sterling (GBP) and American Dollar (USD) as investors waited for Eurozone inflation data and the outcome of the European Central Banks latest policy meeting.



weekly roundup euro, pound and us dollar exchange ratesData published on Monday put further pressure upon the Euro after it showed that confidence and sentiment in the 18-member Eurozone fell more than forecast in September as concerns on the health of the region’s economy and the conflict in Ukraine weighed.

The latest forex rates today:

- The euro to pound exchange rate is +0.12 per cent higher at 0.78482.
- The euro to dollar exchange rate is +0.27 per cent higher at 1.25465.
- The dollar to euro exchange rate is -0.27 per cent lower at 0.79704.

In Austria, business confidence fell the preceding month’s figure of -3.6 to -7.1. In Finland, it fell from -4.8 to -9.0, and in Greece, it dropped more than forecast.

On Tuesday, the Pound managed to edge higher against the single currency despite the release of data showing that Consumer Confidence in the UK fell in August. According to the GfK index, confidence fell from a reading of 1 to -1. A separate report also showed that UK house prices fell more than expected in September.

Later in Tuesday’s session, the Euro declined to new two-year lows against the Pound and US Dollar after Eurozone inflation data came in below expectations. Eurostat said that the Eurozone’s annual inflation rate fell to a five-year low of 0.3% last month. The data increased pressure on the
European Central Bank to introduce fresh monetary stimulus measures.
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Midweek the Euro softened further after data showed that manufacturing activity across the Eurozone eased more than expected in September, further raising concerns over the economy. Further losses against Sterling were held in check however, as a similar report out of the UK also disappointed. The US manufacturing data also disappointed.

The Euro was able to rise against the ‘Greenback’ on Thursday as investors deemed the US Dollars recent strong rally was overdone.

As the week ended the Euro advanced against, all of its major peers after the European Central Bank failed to provide details on the size of its planned asset-purchasing programme. The lack of detail caused economists to reduce their bets that the measures will be enough to expand the central bank’s balance sheet enough to send the currency lower.

A softer than expected UK services PMI sent the Pound lower against most of its major peers, allowing the Euro to advance broadly to a 10-day high. According to the PMI compiled by Markit, activity in the dominant service sector slowed from Augusts’ reading of 60.5 to 58.7 in September.

With the ECB announcement and Sterling weakness, the Euro was able to end the week off the two-year low range it had been stuck at for most of the past month. Further gains are unlikely next week, as the market will shift its focus back to the Eurozones faltering economy.


The Dollar advanced against the Euro and the Pound as last week started.


At the start of the week, the US Dollar advanced to a six year high against the Japanese Yen and maintained its multi-year highs against the Euro and other major peers as demand for the currency remained supported by the preceding week’s strong data releases.

weekly roundup pound, euro and us dollar exchange ratesThe data showed that the US economy expanded at an annual rate of 4.6% in the second quarter of the year, the fastest pace seen in over two years. The currency softened later in the session as mixed data weighed.

The US Dollar then pared its run of gains on Tuesday as investors deemed that the currency’s rally had been too rapid. Also weighing upon the ‘Greenback’ was Monday’s mixed bag of economic data releases. Pending Home Sales fell sharply whilst Personal Spending increased above expectations.

The Pound meanwhile took advantage of the US data and edged higher despite the release of data, which, showed that Consumer Confidence in the UK fell in August. According to the GfK index, confidence fell from a reading of 1 to -1.

Midweek the US Dollar managed to make gains against the Pound, Euro and other major peers as investors took fresh positions on assuming that the Federal Reserve will end its bond-buying programme in October and increase interest rate in 2015. The ‘Greenback’ also made gains as the latest Adp Employment and Manufacturing PMI data came in positively.

The US Dollar dipped again against many major peers due to speculation that the currency has strengthened too rapidly over the past month. The currency was also under pressure as economists predict that Thursday’s economic data releases would highlight the uneven nature of the USA’s economic recovery. The ‘Greenback’ defied that forecast however, as jobless claims data came in positively.

On Friday, the Pound remained under pressure against the US Dollar for a seventh day in a row after Bank of England policy maker Ben Broadbent said that the UK’s economic recovery may not be strong enough to justify an interest rate increase. Sterling could see further movement if the sessions latest Markit/CIPS Services PMI data comes in strongly.

The USD/GBP exchange rate soared to a new 11-month high after the report showed that US unemployment fell to its lowest level in six years. In a report, the Department of Labour said the U.S. economy added 248,000 jobs in September, more than the expected 215,000 increase. The number of jobs created in August was revised to 180,000 from a previous estimate of 142,000.

Next week the currency market is likely to settle as the effects of the data heavy week just gone are digested by economists.

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