The euro to USD currency exchange rate started climbing over the last couple of months after some economic stability in the European region. Germany, which is the most critical individual from the European area, posted lower than expected development in the most recent quarter, which have recently Pressurized the EUR/USD pair conversion rate.
The euro to USD exchange rate stood around 1.11 in the latest trading, after touching 1.13 two weeks ago.
Based on the ECB estimates, inflation is expected to remain low till the end of this year; however, the paltry growth of 0.2% in the last months August was well below analysts’ expectations of 0.3%.
Moody’s said, inflation is likely to remain dim in the following months, which could create a pressure on EUR/USD conversion rate. The consumer price index increased only 0.2% in the last month, which is quite underneath analyst’s expectations of 0.6%.
Even the core inflation numbers were down to 0.8% from 0.9% in July, the first drop in three months. In addition, the firm showed concerns over the eurozone’s weakening economy and low commodity prices, which could create a further pressure EUR to USD currency exchange rate.
Traders are also showing their concerns on the European Central Bank new policy measures, as the believe that the Back will avoid doing from any fresh policy measures in their next policy meeting in the next week
In the United States, the Jackson Hole Symposium impacts boosted the dollar in the last week and sent euro to USD currency conversion rate to the lower level of the post-Brexit. The early response from the feeble NFP was a bounce back in EUR/USD currency exchange rate, but still pair ended with losses.
On the other hand, USD exchange rate looks entirely solid both as far as economic growth rate and financial development, which could make further weight on the euro conversion rate to the USD. In addition, following Fed’s announcement of an expected change in US interest rate, EUR/USD pair exchange rate may fall further.