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EUR USD: Euro vs Dollar Exchange Rate Tumbles Further on Eurozone Recession Fear

October 16, 2014 - Written by Tim Boyer

Markets witnessed the Euro to Dollar exchange rate (EUR/USD) fall further today as fears increased that the 18-member Eurozone is on course to slide into a triple-dip recession before the end of the year and concerns rise over inflation.



pound to euro weekly exchange rate forecastThe Dollar to Euro exchange rate rallied strongly after economists deemed that the currency’s decline in the previous session was overdone as the US economy continues to outperform most other major economies.

Here are the most recent forex conversion rates today:

The Euro to Australian Dollar conversion rate is +0.3 pct higher at 1.46252 EUR/AUD.
The Euro to Canadian Dollar exchange rate is -0.18 pct lower with a conversion rate of 1 EUR equals 1.44178 CAD.
The Euro to Pound conversion rate is -0.72 pct lower at 0.79611 EUR/GBP.
The Euro to New Zealand Dollar exchange rate is +0.05 pct higher with a conversion rate of 1 EUR equals 1.61030 NZD.
The Euro to US Dollar conversion rate is -0.1 pct lower at 1.28082 EUR/USD.

Don't forget if you are waiting to find the best exchange rate for a currency transfer, then you're best bet is to set up your future rate order with a foreign exchange broker!

UK Inflation Shocker Hits Pound Sterling GBP

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The currency plunged on Wednesday after data showed that retail sales declined more than analyst expectations.

The data caused traders to curb their bets that the Federal Reserve will increase interest rates.

‘The data that sparked the move was weaker than expected but overall data-wise, and as far as the growth outlook is concerned, the US looks more favourable than elsewhere.

We believe the overall Dollar-positive position is still very much in place. This should provide some renewed buying opportunities,’
said Ian Stannard from Morgan Stanley.

The US Dollar also received support from the latest Federal Reserve Beige Book reports, which showed that the economy is growing at a modest to moderate pace.

The report eased concerns that the world’s largest economy is experiencing a slowdown.

Euro to Dollar Rate Forecast Today



Mounting concerns over global economic growth and weak Eurozone inflation data bolstered demand for the safe haven USD and damaged sentiment towards the EUR.

Economic data released out of the single currency bloc weighed on the Euro as it showed that inflation in the region remains well below the European Central Banks target of just under 2%.

The inflation reports added to Tuesday’s data which showed that the euro zone's industrial production declined more than forecast in August, while a separate report showed that German economic sentiment deteriorated to the lowest level since December 2012 in October.

Revised data showed that Eurozone Consumer Price Inflation fell to 0.3% on a yearly basis, a five-year low.

The figure confirmed an earlier flash estimate issued by Eurostat.

The poor figure puts mounting pressure upon ECB President Mario Draghi to introduce new measures to stimulate growth and inflation.

‘There can be little doubt that underlying inflation in the Eurozone is exceptionally low both in goods and services. We expect inflation to pick up only modestly to 0.5% to 0.6% by the end of the year,’ said analysts from HSBC.

Also weighing upon sentiment towards the Euro (EUR) are geopolitical events.

Concerns over the Ebola virus increased, after US President Barrack Obama said that the CDC would take immediate measures to any new cases.

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