{"id":11444,"date":"2019-10-10T05:30:56","date_gmt":"2019-10-10T09:30:56","guid":{"rendered":"https:\/\/currencylive.com\/?p=11444"},"modified":"2019-10-10T04:44:12","modified_gmt":"2019-10-10T08:44:12","slug":"101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\/","title":{"rendered":"EUR\/USD: Pair Breaks Through $1.10 On Trade Optimism"},"content":{"rendered":"<p>The euro US dollar exchange rate ended the session on Wednesday up 0.1% at US$1.0985. The euro is extending gains in early trade on Thursday, breaking above US$1.10 on US &#8211; China deal trade hopes.<\/p>\n<p>The euro advanced in the previous session, despite no economic releases. With trade headlines dominating, the euro was trading at the will of the dollar.<\/p>\n<p>Today the euro is extending those gains, even after data showed that the German trade balance decreased in August, with exports shrinking by -1.8% month on month. The data reinforces investor expectations that the manufacturing slump is pushing Europe\u2019s largest economy into recession.<\/p>\n<p>Euro investors will now look ahead to the release of the minutes from the September European Central Bank (ECB) monetary policy meeting. At this meeting the ECB decided to cut the overnight interest rate and restart its quantitative easing programme.\u00a0 Investors will dissect the minutes to assess how much more support the ECB is willing to give to shore up the eurozone economy, or whether they consider that easing monetary policy is increasingly less effective and that fiscal stimulus by individual counties could be a more effective measure to stimulate the economy.<\/p>\n<p>&nbsp;<\/p>\n<table width=\"602\">\n<tbody>\n<tr>\n<td><strong>Why do interest rate cuts drag on a currency\u2019s value?<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Interest rates are key to understanding exchange rate movements. Those who have large sums of money to invest want the highest return on their investments. Lower interest rate environments tend to offer lower yields. So, if the interest rate or at least the interest rate expectation of a country is relatively lower compared to another, then foreign investors look to pull their capital out and invest elsewhere. Large corporations and investors sell out of local currency to invest elsewhere. More local currency is available\u00a0 as the demand of that currency declines, dragging the value lower.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h3><strong>Trade Talks &amp; US Inflation In Focus<\/strong><\/h3>\n<p>The dollar traded broadly flat versus its peers in the previous session as investors digested US \u2014 Sino trade talk developments and the minutes from the September Federal Reserve monetary policy meeting, the FOMC.<\/p>\n<p>There were not great surprises in the minutes from the September meeting. The minutes showed that most policy makers were in favour of a second interest rate cut this year. They also showed that most policy makers were more concerned about risks relating to trade tensions, geopolitics and slowing global growth rather than concerns over the health of the US economy itself. The dollar\u2019s reaction was muted.<\/p>\n<p>Trade is back in focus today. Investors are growing in confidence that the two powers, China and US,\u00a0 will be able to hammer out a deal when they meet for the 13<sup>th<\/sup> round of trade talks in Washington today. Reports of a currency pact, no new tariffs and other agreements are boosting sentiment in the financial markets. As a result, the dollar is dropping lower as investors are no longer seeking its safe haven properties.<\/p>\n<p>The dollar could find some support later with the release of US inflation figures. Analysts are forecasting an uptick to 1.8% from 1.7%.<\/p>\n<p>&nbsp;<\/p>\n<table width=\"602\">\n<tbody>\n<tr>\n<td><strong>What do these figures mean?<\/strong><\/td>\n<\/tr>\n<tr>\n<td>When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute.<\/p>\n<p>For example, it could be written:<\/p>\n<p><em>1 EUR = 1.12829 USD<\/em><\/p>\n<p>Here, \u20ac1 is equivalent to approximately $1.13. This specifically measures the euro\u2019s worth against the dollar. If the U.S. dollar amount increases in this pairing, it\u2019s positive for the euro.<\/p>\n<p>Or, if you were looking at it the other way around:<\/p>\n<p><em>1 USD = 0.88789 EUR<\/em><\/p>\n<p>In this example, $1 is equivalent to approximately \u20ac0.89. This measures the U.S. dollar\u2019s worth versus the euro. If the euro number gets larger, it\u2019s good news for the dollar.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h6><em>This publication is provided as general information only and is not intended as an exhaustive treatment of its subject. TransferWise Inc. and its affiliates (&#8220;we&#8221; or &#8220;us&#8221;) expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of this publication, and you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from us.\u00a0 We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"<p>The euro US dollar exchange rate ended the session on Wednesday up 0.1% at US$1.0985. The euro is extending gains in early trade on Thursday, breaking above US$1.10 on US &#8211; China deal trade hopes. The euro advanced in the previous session, despite no economic releases. With trade headlines dominating, the euro was trading at [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":4580,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1381],"tags":[1399,1413,1395,1393,1387,1450,1479,1400,1397,1398],"class_list":{"0":"post-11444","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eur","8":"category-usd","9":"tag-china","10":"tag-ecb","11":"tag-eur","12":"tag-euro","13":"tag-inflation","14":"tag-minutes","15":"tag-trade-talks","16":"tag-trump","17":"tag-us-dollar","18":"tag-usd"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>EUR\/USD: Pair Breaks Through $1.10 On Trade Optimism - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiona Cincotta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"EUR\\\/USD: Pair Breaks Through $1.10 On Trade Optimism\",\"datePublished\":\"2019-10-10T09:30:56+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\\\/\"},\"wordCount\":769,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100482-gbp-usd-us-china-trade-war.jpg\",\"keywords\":[\"china\",\"ecb\",\"eur\",\"euro\",\"Inflation\",\"minutes\",\"trade talks\",\"trump\",\"us dollar\",\"usd\"],\"articleSection\":[\"EUR\",\"USD\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2019\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\\\/\",\"name\":\"EUR\\\/USD: Pair Breaks Through $1.10 On Trade Optimism - Currency Live\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100482-gbp-usd-us-china-trade-war.jpg\",\"datePublished\":\"2019-10-10T09:30:56+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/currencylive.com\\\/news\\\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\\\/#primaryimage\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100482-gbp-usd-us-china-trade-war.jpg\",\"contentUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100482-gbp-usd-us-china-trade-war.jpg\",\"width\":725,\"height\":400,\"caption\":\"GBP\\\/USD: Dollar Jumps vs Pound Amidst US - China Trade War\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/currencylive.com\\\/news\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"EUR\\\/USD: Pair Breaks Through $1.10 On Trade Optimism\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#website\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/\",\"name\":\"Currency Live\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/currencylive.com\\\/news\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\",\"name\":\"Fiona Cincotta\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g\",\"caption\":\"Fiona Cincotta\"},\"description\":\"Editor - Senior Financial Market Analyst Through over a decade\u2019s experience analysing and reporting on global currency markets, Fiona has a gained a deep understanding of the fundamental drivers of currencies. She is regularly quoted by international news organisations including Financial Times, Reuters and Bloomberg. Fiona is a familiar face after years of appearances on BBC, Sky News and Fox Business News.\",\"sameAs\":[\"https:\\\/\\\/www.linkedin.com\\\/in\\\/fiona-cincotta-bb4a4845\\\/\"],\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/author\\\/fiona-cincotta\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"EUR\/USD: Pair Breaks Through $1.10 On Trade Optimism - Currency Live","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/currencylive.com\/news\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\/","twitter_misc":{"Written by":"Fiona Cincotta","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/currencylive.com\/news\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\/#article","isPartOf":{"@id":"https:\/\/currencylive.com\/news\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\/"},"author":{"name":"Fiona Cincotta","@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/8ef0fafb6c93f1204150bb907b42cfec"},"headline":"EUR\/USD: Pair Breaks Through $1.10 On Trade Optimism","datePublished":"2019-10-10T09:30:56+00:00","mainEntityOfPage":{"@id":"https:\/\/currencylive.com\/news\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\/"},"wordCount":769,"image":{"@id":"https:\/\/currencylive.com\/news\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\/#primaryimage"},"thumbnailUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100482-gbp-usd-us-china-trade-war.jpg","keywords":["china","ecb","eur","euro","Inflation","minutes","trade talks","trump","us dollar","usd"],"articleSection":["EUR","USD"],"inLanguage":"en-US","copyrightYear":"2019","copyrightHolder":{"@id":"https:\/\/currencylive.com\/news\/#organization"}},{"@type":"WebPage","@id":"https:\/\/currencylive.com\/news\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\/","url":"https:\/\/currencylive.com\/news\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\/","name":"EUR\/USD: Pair Breaks Through $1.10 On Trade Optimism - Currency Live","isPartOf":{"@id":"https:\/\/currencylive.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/currencylive.com\/news\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\/#primaryimage"},"image":{"@id":"https:\/\/currencylive.com\/news\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\/#primaryimage"},"thumbnailUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100482-gbp-usd-us-china-trade-war.jpg","datePublished":"2019-10-10T09:30:56+00:00","author":{"@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/8ef0fafb6c93f1204150bb907b42cfec"},"breadcrumb":{"@id":"https:\/\/currencylive.com\/news\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/currencylive.com\/news\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/currencylive.com\/news\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\/#primaryimage","url":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100482-gbp-usd-us-china-trade-war.jpg","contentUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100482-gbp-usd-us-china-trade-war.jpg","width":725,"height":400,"caption":"GBP\/USD: Dollar Jumps vs Pound Amidst US - China Trade War"},{"@type":"BreadcrumbList","@id":"https:\/\/currencylive.com\/news\/101232-eur-usd-pair-breaks-through-1-10-on-trade-optimism\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/currencylive.com\/news\/"},{"@type":"ListItem","position":2,"name":"EUR\/USD: Pair Breaks Through $1.10 On Trade Optimism"}]},{"@type":"WebSite","@id":"https:\/\/currencylive.com\/news\/#website","url":"https:\/\/currencylive.com\/news\/","name":"Currency Live","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/currencylive.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/8ef0fafb6c93f1204150bb907b42cfec","name":"Fiona Cincotta","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g","caption":"Fiona Cincotta"},"description":"Editor - Senior Financial Market Analyst Through over a decade\u2019s experience analysing and reporting on global currency markets, Fiona has a gained a deep understanding of the fundamental drivers of currencies. She is regularly quoted by international news organisations including Financial Times, Reuters and Bloomberg. Fiona is a familiar face after years of appearances on BBC, Sky News and Fox Business News.","sameAs":["https:\/\/www.linkedin.com\/in\/fiona-cincotta-bb4a4845\/"],"url":"https:\/\/currencylive.com\/news\/author\/fiona-cincotta\/"}]}},"jetpack_featured_media_url":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100482-gbp-usd-us-china-trade-war.jpg","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/11444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/users\/163946597"}],"replies":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/comments?post=11444"}],"version-history":[{"count":2,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/11444\/revisions"}],"predecessor-version":[{"id":11446,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/11444\/revisions\/11446"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/media\/4580"}],"wp:attachment":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/media?parent=11444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/categories?post=11444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/tags?post=11444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}