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EUR/USD Exchange Rate News: Euro Steady on News of Eurozone Construction Slowdown

September 19, 2018 - Written by Ben Hughes

On Tuesday, the Euro opened trading against the US Dollar at a level of $1.1669 and after a day of fluctuation, closed slightly higher around $1.1679.

The Euro did rise to a high of $1.1716 during the day, but failed to maintain such a favourable exchange rate for the rest of daily trading.

Euro to US Dollar (EUR/USD) Exchange Rate Tight after Construction Output Slowdown



The Euro (EUR) has failed to get off the starting blocks against the US Dollar (USD) today, trading near its opening rate at $1.1664.

This lacklustre performance comes after the news that Eurozone construction activity slowed during July 2018, compared to the previous year.

Eurozone construction activity shifted lower from 3% in 2017 to 2.6% this year, although this decline was still better than the anticipated 1.7% printing.

US Dollar to Euro (USD/EUR) Exchange Rate Steady as Experts Analyse US-China Trade War



The US Dollar (USD) has held steady against the Euro (EUR) today, with continued evaluation of the US-China trading relationship leaving the pairing close.

Tuesday saw US trade officials approve tariffs worth $200bn on Chinese goods – China quickly responded by imposing charges worth $60bn on US imports into China.

While this seems an alarming escalation of the trading conflict on paper, China’s retaliatory measure hasn’t been quite as bad as some economists had expected.

The tariff changes proposed by both nations will come into effect on 24th September, but Daniel Deming of KKM Financial has stated that:

‘The market is thinking this wasn't the worst-case scenario.’


Mr Deming’s statement is supported by the fact that the Chinese government is dropping charges on some tariffed items from 20% to 10% or 5%, although this has still been an escalation of the ongoing conflict.

The US and China had been preparing to hold late-September talks aimed at diffusing current tensions, but it is now unclear if these discussions will go ahead.

Further reducing the chances of imminent talks, Chinese Foreign Ministry Spokesman Geng Shuang put the blame on the US side by saying:

‘The Chinese side has repeatedly emphasized that the only correct way to solve the trade dispute between China and the United States is through talk and consultation on the basis of equity, integrity and mutual respect.

‘But what the US side has done doesn't show sincerity or goodwill.’


Summing up the latest development with a pessimistic outlook, Gavekal Senior Analyst Arthur Kroeber said:

‘The principal objective of the tariffs is probably not to bring Beijing to the bargaining table.

‘Rather, it is to force US multinational companies to pull back their investments in China, so that the interdependence of the two rival economies is reduced.

‘Against this aim, no possible offer by China can cause the tariffs to be lifted.’


EUR/USD Exchange Rate Forecast: Will Falling Eurozone Confidence Score Trigger Euro to US Dollar Decline?



The Euro (EUR) is in danger of making losses against the US Dollar (USD) in the near-term, when Eurozone consumer confidence data is released on Thursday afternoon.

September’s consumer confidence estimate is tipped to show a worsening of already-negative confidence levels with a shift from -1.9 points to -2.

Although only a minimal change, such a result could still lower confidence among Euro traders and trigger a loss for the single currency.

Looking further ahead, the Euro could also be negatively affected by Friday’s Eurozone PMI readings for September.

These preliminary figures are forecast to show a slower pace of manufacturing sector activity during the month, alongside an overall slowdown in levels of Eurozone economic activity.

Both results could cause EUR/USD exchange rate losses – a decline is made more likely by predictions for the afternoon’s US PMI readings.

These estimates, also covering September, are expected to show a faster pace of economic activity across the board.

As such, the US Dollar could make a last-minute advance against the Euro on Friday and close weekly trading on a high note.
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