Learn more about the exchange rate market. Read our EUR/US Dollar currency update for the latest news and move your money at the right time. Discover how to save money and benefit from all the advantages that TorFX, our trustworthy partner offers. From no-fees currency transfers to fixed exchange rate up to two years.
If you’re an expat and need to move money between your home and adopted country, securing the right exchange rate for your currency transfers can make a big difference to how much you receive.
US Dollar Soars in Risk-Off Trade
The Euro US Dollar exchange rate has tumbled over the last week, mostly as a result of markets favouring the safe-haven ‘Greenback’ amidst a souring of market sentiment.This has been primarily driven by concerns that Europe is facing a third wave of coronavirus cases, as well as the threat of rising tensions between the West and China after the US, Canada, the UK and EU all imposed sanctions on Beijing for human rights abuses in Xinjiang.Further bolstering the appeal of the US Dollar over the past week has been the continued rise in US Treasury yields, which touched a new 13-month high.
But it hasn’t all been plain sailing for the US Dollar, as the currency faced a sharp sell-off last week after the Federal Reserve’s forward guidance, following its latest policy meeting, proved more dovish than expected. Meanwhile, unsurprisingly Europe’s coronavirus resurgence has taken its toll on the single currency, particularly after Germany announced it would be extending its lockdown measures as it tries to contain the spread of a more viral coronavirus strain that originated in the UK. However, offering some limited support to the single currency has been the release of the Eurozone’s latest PMI figures, which revealed the bloc’s private sector returned to growth this month after the manufacturing sector enjoyed a record expansion in economic activity.
Additional Lockdown Announcements to Undermine the Euro?
Looking ahead, the Euro will remain vulnerable to additional losses through the remainder of this week as European coronavirus headline remain in the spotlight. Should more countries follow Germany in tightening restrictions then we are likely to see the single currency extend its downward trajectory. These losses could be accentuated if the EU’s vaccine rollout also continues to disappoint. Meanwhile, so long as the current risk-off mood continues to prevail, we can expect to see the US Dollar maintain its position as the strongest G10 currency. Also of note to USD investors will be the latest US PCE price index, which could further bolster the ‘Greenback’ if the Fed’s favoured measure of inflation shows that price growth continued to accelerate last month.
How to Save On Your EUR/ US Dollar Currency Transfers
International moves can involve various monetary decisions – from investment in foreign property, to international money transfers and moving savings. Due to the renewed lockdown measures, the exchange rate market is facing significant fluctuations. Securing an exchange rate will protect you from any unfavourable shifts in the currency market. Moreover, conducting currency transfers without charging fees means saving money which could be spent enjoying your new life abroad as an expat.
Start maximising your returns on your EUR/USD money transfer. Among others, remarkable advanteges are:
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What Does this Mean for Expats?
If the market mood continues to sour, we are likely to see the US Dollar strengthen, as a result expats using Euros to purchase USD may get less for their money. However, a stronger US Dollar would be positive for any expats sending money back to Europe.
When you need to move money abroad talk to currency experts TorFX and find out how to make your money go further. Click here to get a free quote or to access their online trading platform to view live rates register here.