Euro US Dollar Exchange Rate Falls as Irish Construction PMI Disappoints

February 11, 2019 - Written by John Cameron

STORY LINK Euro US Dollar Exchange Rate Falls as Irish Construction PMI Disappoints

The Euro to US Dollar exchange rate is down today and is currently trading around $1.1292 on the inter-bank market.

Euro (EUR) failed to gain on the US Dollar (USD) today following the publication of the Irish construction PMI figures, which eased to 54.6.

Oliver Mangan, a Chief Economist at AIM, commented:

‘The decline in the other components of the PMI survey, though, was much less pronounced, most notably new export business and employment. Indeed, quite encouragingly, business expectations in the survey rose to a three-month high.’

These were followed by the printing of the Danish inflation rate figures for January, which increased above expectation to 1.3%.

Norway’s inflation rate figures, meanwhile, fell below expectation – and although Norway is not part of the Eurozone it is nevertheless a close trading partner with the bloc, leaving some EUR investors feeling skittish as the Eurozone economy continues to show signs of slowing down.

The Eurozone did not see any other significant economic data releases today, with many Euro investors instead focusing on geopolitical developments.

EUR investors have focused on Brexit news, and with UK Prime Minister Theresa May and the opposition leader, Jeremy Corbyn, agreeing in principle to avoid a no-deal scenario between the UK and EU, some traders have recovered their confidence that a hard Brexit could be avoided.

USD/EUR Exchange Rate Rises despite Mounting US Government Shutdown Fears

The US Dollar, meanwhile, has also suffered as fears mount that the US could face a second government shutdown, as the divide between President Donald Trump and the House of Representatives continues to widen over funding for the controversial Mexican border wall.

Furthermore, if a compromise fails to occur between the White House and Congress, then the US government is expected to shut down once again by Friday this week.

Mick Mulvaney of the White House Chief of Staff, commented that the shutdown was ‘still on the table’, adding:

‘You cannot take a shutdown off the table… [Instead] you will probably see the president say ‘okay’ and then go and find the rest of the money another way.’

The US also saw no notable publications of economic data today, with many ‘Greenback’ traders focusing on political developments.

Euro US Dollar (EUR/USD) Outlook: US Government Shutdown in Focus

USD traders will be looking ahead to tomorrow’s speech by the Chair of the Federal Reserve, Jerome Powell, and with any bullish comments the ‘Greenback’ could further benefit against the single currency.

EUR investors, meanwhile, will be looking ahead to Wednesday’s printing of the Eurozone’s industrial production figures for December.

The EUR/USD exchange rate is likely to be driven by political developments in the coming week, and with any signs that the US will once again face another government shutdown, the Euro could potentially gain against the ‘Greenback’.

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TAGS: American Dollar Forecasts Daily Currency Updates Euro Forecasts