Euro Rate Today: Euro Rallies against US Dollar Exchange Rate as ECB Delays QE

December 4, 2014 - Written by Ben Hughes

STORY LINK Euro Rate Today: Euro Rallies against US Dollar Exchange Rate as ECB Delays QE

Today Foreign Exchange Markets Saw the Euro to Dollar Exchange Rate Rally

The Euro strengthened against the US Dollar to rally to a session high, after the European Central Bank (ECB) left interest rates unchanged at the historic low level of 0.05% and as ECB President Mario Draghi suggested that no quantitative easing measures will be introduced for the time being.

Against the US Dollar, the single currency recovered from its lowest level in two years. The Euro also rallied strongly against the Pound and most major currencies.

Euro Exchange Rates Today

The Euro to Australian Dollar exchange rate today is converting +0.69 per cent higher at 1.47697 EUR/AUD.
The Euro to Canadian Dollar exchange rate is +0.71 pct higher with a conversion rate of 1 EUR equals 1.40940 CAD.
The Euro to Swiss Franc exchange rate today is converting -0.1 per cent lower at 1.20225 EUR/CHF.
The Euro to Pound Sterling exchange rate is +0.64 pct higher with a conversion rate of 1 EUR equals 0.78975 GBP.
The Euro to US Dollar exchange rate today is converting +0.51 per cent higher at 1.23773 EUR/USD.

EUR/USD Advances on ECB Conference

Early next year the Governing Council will reassess the monetary stimulus achieved, the expansion of the balance sheet and the outlook for price developments. We will also evaluate the broader impact of recent oil price developments on medium-term inflation trends in the euro area.

Should it become necessary to further address risks of too prolonged a period of low inflation, the Governing Council remains unanimous in its commitment to using additional unconventional instruments within its mandate.

This would imply altering early next year the size, pace and composition of our measures. In response to the request of the Governing Council, ECB staff and the relevant Eurosystem committees have stepped up the technical preparations for further measures, which could, if needed, be implemented in a timely manner,’ said President Draghi in the press conference which followed the interest rate announcement.

Even the ECB slashing its growth and inflation forecasts was not enough to keep the Euro lower against its peers. The ECB cut its forecast for 2014 inflation from 0.6% to 0.5% and GDP from 0.9% to 0.8%. The lowering of its forecasts caused some economists to raise their expectations that the Euros rally will be short-lived as the cut in expectations heightens the likelihood that more easing measures will have to be introduced to aid the flagging Eurozone economy.

The US Dollar meanwhile softened despite data showing that few US citizens filed for unemployment benefits last week. According to the data released by the Washington based Labour Department, the number of jobless claims fell by 17,000 to 297,000, a drop from the preceding week’s figure of 314,000. Economists had been expecting a fall to 295,000.
The fact that the number of claimants fell back below the 300,000 level will ease concerns that the US labour market was beginning to slowdown as the year ends.

Euro Dollar Exchange Rate Forecast

The US Dollar is likely to recover against the Euro as the week ends if eagerly anticipated Non-Farm Payrolls data comes in strongly and European GDP data disappoints.

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