{"id":6133,"date":"2019-09-25T04:00:28","date_gmt":"2019-09-25T08:00:28","guid":{"rendered":"https:\/\/currencylive.com\/?p=6133"},"modified":"2019-09-25T02:46:20","modified_gmt":"2019-09-25T06:46:20","slug":"101178-eur-usd-pair-declines-back-to-1-10-amid-growing-trade-tensions","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/101178-eur-usd-pair-declines-back-to-1-10-amid-growing-trade-tensions\/","title":{"rendered":"EUR\/USD: Pair Declines Back To $1.10 Amid Growing Trade Tensions"},"content":{"rendered":"<p>Weaker than forecast US data and the US House launching a formal impeachment investigation into President Trump sent the euro US dollar exchange rate northwards on Tuesday. The euro US dollar exchange rate rallied to a peak of US$1.1024. However, the pair has slipped back to $1.10 in early trade on Tuesday.<\/p>\n<p>The euro found some support from better than forecast German sentiment data on Tuesday. The German IFO survey showed that German business climate improved in September. The headline index came in at 94.6, slightly up from August\u2019s 94.3. Following the release, the euro advanced.<\/p>\n<p>However, the move higher was short lived. As the IFO itself pointed out, the data doesn\u2019t indicate a new trend, only that the \u201cslowdown is taking a break\u201d. The broad expectation by business and market participants is that Germany is teetering on the brink of recession.<\/p>\n<p>A lack of high impacting data from the Eurozone means that the common currency is now trading at the will of the dollar.<\/p>\n<h3><strong>Trump in Trouble<\/strong><\/h3>\n<p>The dollar was out of favour in the previous session after disappointing data and amid the launching of a formal impeachment investigation into President Trump.<\/p>\n<p>US consumers have remained resilient, with few signs of the US manufacturing slump spilling over into the US service sector. However, Tuesday\u2019s US consumer confidence figures unnerved investors.<\/p>\n<p>US consumer confidence experienced its largest drop in 9 months in September and the largest shortfall relative to analysts\u2019 expectations since 2012. The US economy needs a positive consumer to prop up the economy. Signs that the US consumer is less positive about the outlook could indicate that an economic slowdown is on the way. The weak data weighed on demand for the dollar.<\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>Why does poor economic data drag on a country\u2019s currency?<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Slowing economic indicators point to a slowing economy. Weak economies have weaker currencies because institutions look to reduce investments in countries where growth prospects are low and then transfer money to countries with higher growth prospects. These institutions sell out of their investment and the local currency, thus increasing supply of the currency and pushing down the money\u2019s worth. So, when a country or region has poor economic news, the value of the currency tends to fall.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>In addition to weak data, dollar investors also grappled with heightened domestic political risk. US House speaker Nancy Pelosi accused President Trump of enlisting a foreign power to help him win the 2020 elections. She will launch a formal impeachment investigation into Trump. Investors don\u2019t like uncertainty. An impeachment trial brings uncertainty, as a result the dollar slipped.<\/p>\n<p>However, the political drama didn\u2019t end there. The dollar is finding support in early trade on Wednesday as investors react to reports that President Trump criticised China in a United Nations speech, sparking concerns that relations between the worlds largest two economies were worsening. This has triggered a fresh wave of risk aversion. When geopolitical risk increases investors tend to buy into the safe haven dollar, lifting the greenback.<\/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>Weaker than forecast US data and the US House launching a formal impeachment investigation into President Trump sent the euro US dollar exchange rate northwards on Tuesday. The euro US dollar exchange rate rallied to a peak of US$1.1024. However, the pair has slipped back to $1.10 in early trade on Tuesday. The euro found [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":5182,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1381],"tags":[1399,1435,1395,1393,1557,1556,1431,1400,1397,1398],"class_list":{"0":"post-6133","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-consumer-confidence","11":"tag-eur","12":"tag-euro","13":"tag-german-sentiment","14":"tag-impeachment","15":"tag-trade-war","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 Declines Back To $1.10 Amid Growing Trade Tensions - 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\/101178-eur-usd-pair-declines-back-to-1-10-amid-growing-trade-tensions\/\" \/>\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\\\/101178-eur-usd-pair-declines-back-to-1-10-amid-growing-trade-tensions\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101178-eur-usd-pair-declines-back-to-1-10-amid-growing-trade-tensions\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"EUR\\\/USD: Pair Declines Back To $1.10 Amid Growing Trade Tensions\",\"datePublished\":\"2019-09-25T08:00:28+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101178-eur-usd-pair-declines-back-to-1-10-amid-growing-trade-tensions\\\/\"},\"wordCount\":764,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101178-eur-usd-pair-declines-back-to-1-10-amid-growing-trade-tensions\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100806-Brexit-and-ECB-doubts.png\",\"keywords\":[\"china\",\"consumer confidence\",\"eur\",\"euro\",\"german sentiment\",\"impeachment\",\"trade war\",\"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\\\/101178-eur-usd-pair-declines-back-to-1-10-amid-growing-trade-tensions\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101178-eur-usd-pair-declines-back-to-1-10-amid-growing-trade-tensions\\\/\",\"name\":\"EUR\\\/USD: Pair Declines Back To $1.10 Amid Growing Trade Tensions - 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