Best Dollar to Euro Exchange Rate in Nine Years - Further EUR/USD Losses Forecast

Modified: Wednesday, 7 January 2015 21:06 BST - Written by John Cameron

STORY LINK Best Dollar to Euro Exchange Rate in Nine Years - Further EUR/USD Losses Forecast

Eurozone CPI Data Hits Euro Exchange Rate

Investors are preparing for the euro to Pound Sterling (EUR/GBP) and the euro to Dollar (EUR USD) exchange rates to plummet later this month following the publication of inflation figures from the euroland earlier today which suggested that consumer prices in the region had dropped by their largest amount since the immediate aftermath of the global financial crisis of 2008.

The Euro to Australian Dollar exchange rate today is converting -0.23 per cent lower at 1.46634 EUR/AUD.
The Euro to Canadian Dollar exchange rate today is converting -0.46 per cent lower at 1.39917 EUR/CAD.
The Euro to Pound Sterling conversion rate is -0.16 pct lower at 0.78321 EUR/GBP.
The Euro to New Zealand Dollar exchange rate converts -0.78 per cent lower at 1 EUR is 1.52132 NZD.
The Euro to US Dollar conversion rate is -0.33 pct lower at 1.18336 EUR/USD.

Deflation in Mainland Europe

The eurozone Consumer Price Index data revealed that inflation in the euro area had dropped into negative territory last month; the annualised CPI figure showed at -0.2%, suggesting that deflation has begun in the euroland economy.

The news would appear to make a bout of all-out Quantitative Easing from the European Central Bank, (which would involve the bulk purchase of regional sovereign debt), highly likely for later this month.


Ken Wills of USForex certainly thinks so; he stated earlier that, ‘everybody’s betting on Draghi to need to do something’.

He went on to state that today’s inflation numbers, ‘definitely puts the heat on him that he needs to open up Quantitative Easing to allow sovereigns to be included.’

Pound to Euro Exchange Rate Edges Higher

The development sent the Pound Sterling euro surging higher; GBP EUR had been tipping the scales at 1.2729 earlier today, but by the latter part of the European trading session, the pair was trading at closer to the 1.2800 threshold.

Meanwhile, the euro US Dollar exchange rate traded down to another fresh 9-year low at 1.1809 a short time ago.

There appears to be little stopping the world’s premier currency pair heading even further Southwards.

US Jobs Figures Please

The US Dollar’s fortunes on the day were assisted by a private survey from ADP Research suggested that the American economy posted another strong set of job creation figures last month.

The survey hinted that 241,000 new positions were generated in the world’s leading economy last month.

Market participants will have to wait until Friday to find out the official version of the figures via the latest Non-Farm Payrolls numbers. Meanwhile, the forecast remains positive for the US Dollar.

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