EUR slips lower as European CPI and EU Employment figures fail to provide support
The euro dollar exchange rate is 0.42 pct in the red at 1.3320. Analyst Ian Coleman at Pia-First Capital tells us he is predicting further declines in the euro dollar exchange rate today based of a wedge forming on EUR-USD's charts.
The euro pound exchange rate is 0.11 pct higher at 0.8517.
The euro Australian dollar exchange rate is 0.17 pct lower at 1.3855.
Please be aware that the above quotes are taken from the wholesale markets and your bank is able to add their own spread at will. However, an independent FX provider will actively seek to undercut your bank's offer, thus delivering you more currency. Please find out more here.
The economic news has been very sparse tonight with only European CPI and EU Employment change on the docket.
The inflation data come in as expected at 1.4% vs. 1.4% eyed while the employment change declined by -0.5% versus -.0.2% forecast.
The EZ unemployment jobless rate is now at 7-year lows with the data showing a sharp decline in the number of people employed.
Greece was the worse where people in work dropped by 2.3% on the quarter, followed by Portugal and the rest of the usual suspects in the southern periphery.
"The news was less than inspiring for euro longs and the pair dribbled towards the 1.3300 figure in morning dealing," says Boris Schlossberg at BK Asset Management.
Ishaq Siddiqi notes that equity markets are also losing a bit of momentum as we head into lunch here in Europe with jobs data from the euro zone reaffirming the dire situation in the 17-nation bloc.
"Harmonised Inflation data from the region was in line with expectations so the ECB have little excuse to refrain from stimulating the economy however this month’s policy meeting was difficult to swallow with a more hawkish Draghi who held back from hinting on using tools to kick-start growth in the months ahead," says Siddiqi.
According to the ETX Capital analyst:
"Traders are worried that the ECB is falling increasingly behind the curve with monetary policies and must act in order to generate growth in the region by the end of the year.
"The inactive OMT programme may have helped stabilise prices in money markets from late last year up until recently but it has not been used as the threat of bailouts have receded across the region and may not even need to be tapped into anytime soon. The market wants an active plan from the ECB at a time when the Fed could potentially remove liquidity."
In other euro exchange rate news we see questions about the OMT’s legality by German lawmakers has the market jittery over how effective the programme could be if the ECB is unable to use it in the way that’s intended. US stock futures are indicating a lower open on Wall Street with the DJIA front month futures contract off around 24 points and the S&P500 contract down 2.5 points.
It seems that caution is creeping back in the market ahead of some crucial data in the form of industrial output and the Michigan confidence report with markets again likely to use the data as a gauge to second guess the Fed’s move ahead of next Wednesday’s policy meeting.