Euro (EUR) and US Dollar (USD) Exchange Rate Forecasts Improve ahead of Fed Decision

Modified: Wednesday, 27 April 2016 17:04 BST - Written by James Fuller

STORY LINK Euro (EUR) and US Dollar (USD) Exchange Rate Forecasts Improve ahead of Fed Decision

The closely-linked Euro and US Dollar may be in for a major shift tonight, when the Fed interest rate decision is due to come. A rate freeze is currently on the cards.

US Dollar (USD) Exchange Rates Cool Following Disappointing Data

A brace of disappointing data releases on the other side of the Atlantic have hurt the US Dollar (currency : USD) this afternoon. The latest US Durable Goods Orders is always closely monitored for hints at levels of confidence amongst American economic participants; the March statistic was expected to show a pronounced improvement from February’s dire showing of -3.0%, with the consensus expectation amongst analysts being for a result of 1.9%.

The Durable Goods Orders outcome of 0.8% therefore came as a blow for the Buck and matters got worse for the US unit as the afternoon wore on. This month’s US Consumer Confidence survey, published a short time ago, revealed a pronounced drop-off in the mood amongst American economic participants, suggesting that concerns regarding a renewed economic slowdown Stateside may be increasing.

The Pound Sterling US Dollar exchange rate started the day lodged in the 1.4400s GBP USD, but by the final stages of the European equities session, the pair had traded up to as high as 1.4639. Cable is being supported by a generalised improvement across the board for the Pound thanks to an improved showing for the ‘Remain’ campaign in recent EU Referendum opinion polls.

Euro (EUR) Exchange Rates Continue to Struggle following Dovish Draghi Comments

Elsewhere, the euro (currency : EUR) continues to struggle against the other sixteen most actively traded global currencies following last week’s downbeat comments from Mario Draghi, the European Central Bank (ECB) President.

The ECB’s head honcho, speaking at his Bank’s post policy announcement press conference at the end of last week, noted that, ‘in order to reap the full benefits from our monetary policy measures, other policy areas must contribute much more decisively, both at the national and at the European levels.’


Draghi’s pela to the euroland’s governments to adopt expansionary fiscal policies was viewed by many as a tacit admission that the ECB has done as much as it can to steer the eurozone away from a decimating bout of deflation. Investors have been spooked by this and the euro is forecast has deteriorated as a result.

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TAGS: American Dollar Forecasts Euro Forecasts Pound Euro Forecasts