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Euro exchange rate today: EUR edges lower as German factory order data misses the mark

A look at the currency markets in the immediate wake of today's Factory Orders shows a mixed tone for the shared currency:

  • The euro dollar exchange rate is 0.07 pct down on last night's closing rate at 1.3569.
  • The euro pound exchange rate is 0.13 pct higher at 0.8448.
  • The euro Australian dollar exchange rate is 0.3 pct lower at 1.4527.

NB: The above quotes are wholesale market quotes, your bank will affix a discretionary spread when making a retail offer. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering more currency. Please learn more here.

A look at today's data

German trade balance exceeded expectations at 15.6bn and German Factory orders later this morning (11:00) could provide the euro with that extra boost.

At 11 AM it was reported that Factory Orders s.a. (MoM) (Aug) came in at -0.3%, analysts were predicting a reading of +1.2%.

Short-term outlook favours further gains for the euro

Emmanuel Ng at OCBC Bank says he is predicting further climbs for the euro in the short-term:

"Our view remains on track and the pair may remain supported on dips pending further US fiscal developments this week with
support seen towards 1.3500 before 1.3450.

"Meanwhile, Upside head room is seen extending towards the 1.3650 area for now. The ECB’s Draghi is expected to speak this week and expect the resulting rhetoric to remain sufficiently dovish, although inherent USD weakness may continue to prevail for the pair."

Meanwhile, analysts at ICN Financial Markets are predicting the euro dollar to see gains limited:

"The pair failed to maintain the upside move and remained below Linear Regression Indicators and 1.3605 levels. Trading below the referred to level is negative and might push the pair towards 1.3505 levels. Breaking 1.3505 might extend the bearish correctional wave, as the technical indicators support this bearish correction.

"The trading range for today is among the key support at 1.3445 and key resistance at 1.3655. The general trend over short term basis is sideways with daily closing between 1.2775 and 1.3600."

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