{"id":5688,"date":"2019-08-12T05:14:56","date_gmt":"2019-08-12T09:14:56","guid":{"rendered":"https:\/\/currencylive.com\/?p=5688"},"modified":"2019-08-12T11:04:33","modified_gmt":"2019-08-12T15:04:33","slug":"101082-euro-edges-ahead-amid-growing-german-us-recession-fears","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\/","title":{"rendered":"EUR\/USD: Euro Edges Ahead Amid Growing German &#038; US Recession Fears"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The euro gained versus the US dollar in the previous week. The euro US dollar exchange rate rallied 0.8% against the greenback, closing the week at US$1.1201. The euro is edging higher versus the dollar in early trade on Monday.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>What do these figures mean?<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, it could be written:<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">1 EUR = 1.12829 USD<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Or, if you were looking at it the other way around:<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">1 USD = 0.88789 EUR<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">The euro was in demand in the previous week despite growing concerns over the health of the bloc\u2019s largest economy, Germany. Data across the previous week highlighted growing concerns surrounding Germany. Industrial production dropped by a larger than expected -1.5% month on month in June. It also suffered its largest annual decline in 9 years. German exports also declined 8.8% year on year in June. Data continues to highlight the struggles that the German industrial sector is facing as global trade tensions escalate.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In light of the continual disappointing data from Germany, market participants fear that the German economy could be heading for its first recession in over 6 years. Investors will be watching closely this week when German GDP data is released. Large German companies such as Daimler and Lufthansa have already slashed their outlook whilst surveys are also showing that business confidence is falling. Should Germany, also referred to as the engine of Europe head into recession, there is a good chance that the eurozone will follow suit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Given slowing economic conditions, the probability of the European Central Bank losing monetary policy and cutting interest rates is growing. Weak data from Germany could heighten such concerns, sending the euro lower.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Why do interest rate cuts drag on a currency\u2019s value?<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"font-weight: 400;\">Dollar Dips On Recession Fears<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The dollar was broadly weaker in the previous week amid mounting speculation that the Federal Reserve could cut US interest rates again in the coming months.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The US dollar is renowned for its safe haven status. As the reserve currency of the world, in times of increased geopolitical tension the dollar often moves higher. However, this has not been the case in the most recent weeks of the ongoing US \u2014 Sino trade dispute. Market participants are growing increasingly concerned that the trade spat is negatively impacting the US economy. Warning signs of a US recession from the US financial markets are the strongest that they have been for a decade.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With uncertainties over the health of the US economy continuing, should upcoming US economic data fall short of analysts\u2019 expectations, fears of a US recession and Fed rate cut could grow. This could drag the dollar lower.<\/span><\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><small><em><br \/>\nThis publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice 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 or other professional advice from TransferWise Inc., Currency Live or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. Consult our <a href=\"https:\/\/currencylive.com\/risk-warning\/\">risk warning<\/a> page for more details.<\/em><\/small><\/p>\n<p><small><em>The content at Currency Live is the sole opinion of the authors and in no way reflects the views of TransferWise Inc.<\/em><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The euro gained versus the US dollar in the previous week. The euro US dollar exchange rate rallied 0.8% against the greenback, closing the week at US$1.1201. The euro is edging higher versus the dollar in early trade on Monday. What do these figures mean? When measuring the value of a pair of currencies, one [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":5686,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1381],"tags":[1416,1413,1395,1393,1408,1409,1414,1415,1397,1398],"class_list":{"0":"post-5688","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eur","8":"category-usd","9":"tag-contraction","10":"tag-ecb","11":"tag-eur","12":"tag-euro","13":"tag-fed","14":"tag-gdp","15":"tag-recession","16":"tag-trade-dispute","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: Euro Edges Ahead Amid Growing German &amp; US Recession Fears - 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\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\/\" \/>\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\\\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"EUR\\\/USD: Euro Edges Ahead Amid Growing German &#038; US Recession Fears\",\"datePublished\":\"2019-08-12T09:14:56+00:00\",\"dateModified\":\"2019-08-12T15:04:33+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\\\/\"},\"wordCount\":773,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/usd-euro-edges-ahead.jpg\",\"keywords\":[\"contraction\",\"ecb\",\"eur\",\"euro\",\"fed\",\"gdp\",\"recession\",\"trade dispute\",\"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\\\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\\\/\",\"name\":\"EUR\\\/USD: Euro Edges Ahead Amid Growing German & US Recession Fears - Currency Live\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/usd-euro-edges-ahead.jpg\",\"datePublished\":\"2019-08-12T09:14:56+00:00\",\"dateModified\":\"2019-08-12T15:04:33+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/currencylive.com\\\/news\\\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\\\/#primaryimage\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/usd-euro-edges-ahead.jpg\",\"contentUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/usd-euro-edges-ahead.jpg\",\"width\":1200,\"height\":675},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/currencylive.com\\\/news\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"EUR\\\/USD: Euro Edges Ahead Amid Growing German &#038; US Recession Fears\"}]},{\"@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: Euro Edges Ahead Amid Growing German & US Recession Fears - 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\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\/","twitter_misc":{"Written by":"Fiona Cincotta","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/currencylive.com\/news\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\/#article","isPartOf":{"@id":"https:\/\/currencylive.com\/news\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\/"},"author":{"name":"Fiona Cincotta","@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/8ef0fafb6c93f1204150bb907b42cfec"},"headline":"EUR\/USD: Euro Edges Ahead Amid Growing German &#038; US Recession Fears","datePublished":"2019-08-12T09:14:56+00:00","dateModified":"2019-08-12T15:04:33+00:00","mainEntityOfPage":{"@id":"https:\/\/currencylive.com\/news\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\/"},"wordCount":773,"image":{"@id":"https:\/\/currencylive.com\/news\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\/#primaryimage"},"thumbnailUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/usd-euro-edges-ahead.jpg","keywords":["contraction","ecb","eur","euro","fed","gdp","recession","trade dispute","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\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\/","url":"https:\/\/currencylive.com\/news\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\/","name":"EUR\/USD: Euro Edges Ahead Amid Growing German & US Recession Fears - Currency Live","isPartOf":{"@id":"https:\/\/currencylive.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/currencylive.com\/news\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\/#primaryimage"},"image":{"@id":"https:\/\/currencylive.com\/news\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\/#primaryimage"},"thumbnailUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/usd-euro-edges-ahead.jpg","datePublished":"2019-08-12T09:14:56+00:00","dateModified":"2019-08-12T15:04:33+00:00","author":{"@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/8ef0fafb6c93f1204150bb907b42cfec"},"breadcrumb":{"@id":"https:\/\/currencylive.com\/news\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/currencylive.com\/news\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/currencylive.com\/news\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\/#primaryimage","url":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/usd-euro-edges-ahead.jpg","contentUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/usd-euro-edges-ahead.jpg","width":1200,"height":675},{"@type":"BreadcrumbList","@id":"https:\/\/currencylive.com\/news\/101082-euro-edges-ahead-amid-growing-german-us-recession-fears\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/currencylive.com\/news\/"},{"@type":"ListItem","position":2,"name":"EUR\/USD: Euro Edges Ahead Amid Growing German &#038; US Recession Fears"}]},{"@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\/usd-euro-edges-ahead.jpg","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/5688","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=5688"}],"version-history":[{"count":2,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/5688\/revisions"}],"predecessor-version":[{"id":5690,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/5688\/revisions\/5690"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/media\/5686"}],"wp:attachment":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/media?parent=5688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/categories?post=5688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/tags?post=5688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}