Euro Dollar Exchange Rate: EUR/USD in Deadlock, Impressive Spanish Bond Auction Provides Support
- Written by: Gary Howes
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The euro dollar exchange rate has seen its correction lower halt and consolidation appears to be the order of the day. Support was afforded to the euro thanks to an impressively well subscribed Spanish bond auction.
All the action in global FX has today been in the British pound, Australian dollar and Canadian dollar.
But what about the world's largest currency pair, the euro dollar exchange rate?
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Today's euro exchange rates:
The euro dollar (EUR/USD): Unchanged at 1.3560.
The euro pound (EUR/GBP): 0.61 pct down at 0.8180.
The euro Aussie (EUR/AUD): 0.49 pct down at 1.5327.
The euro Yen (EUR/CHF): 0.04 pct higher at 14149.
Note: Our EUR quotes are taken from the wholesale inter-bank markets. Your bank will seek to affix a spread when passing on a retail rate. However, an independent FX provider will guarantee to undercut your banks offer, thereby delivering more currency. Please learn more here.
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Euro dollar exchange rate stuck in neutral
Today, trading in the EUR/USD and USD/JPY cross rates showed no clear directional trend.
"The dollar was well bid early in the session, but the euro regained the lead as a Spanish 10‐year bond auction attracted an impressive bid," notes Piet Lammens at KBC Markets.
Overnight, EUR/USD was well bid in Asia and drifted slightly above yesterday’s top. There was no big story behind this move. EUR/USD might have received some support from a positive sentiment on risk in Asia.
"Some dollar caution/yen strength ahead of the BOJ policy announcement might have played a role, too. Even so EUR/USD and USD/JPY were still near yesterday’s closing levels at the start of European trading," says Lammens.
There were no important eco releases in the Europe nor in the US.
So, technical considerations prevailed. Bond yields differentials between the US and Germany didn’t provide clear guidance, but at least there was no additional interest rate support for the dollar.
EUR/USD touched in intraday low at 1.3535 after the publication of the UK data. Afterwards, the pair rebounded in the intraday trading range and even returned close to the Asian highs in the 1.3580 area.
"A remarkably strong bid for a Spanish 10‐year bond auction might have supported the euro. In a daily perspective, EUR/USD is marginally higher compared to yesterday at the end of the European session. The rebound of the dollar against the euro has halted, awaiting more concrete news," notes Lammens.
Elsewhere, USD/JPY hovered up and down in the lower half of the 104 big figure.
There was some temporary volatility in the run‐up to the BOJ policy announcement.
The decision was as expected and governor Kuroda didn’t bring much news. (European) equities also didn’t provide any clear guidance for the yen. EUR/JPY is holding close to the 104.50 pivot.
