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Posted May 30th, 2014 by Charles Purdy

All eyes on next week’s ECB meeting

After both the European elections and European Central Bank (ECB) President Mario Draghi’s addresses early in the week failed to have much of an impact on euro rates, it has proved to be a relatively quiet week for the single currency. Gains made against sterling were consistent yet unspectacular, while the euro weakened slightly against a resurgent US dollar. No interesting leaks were reported this week in the run up to the next ECB meeting on 5th June and investor activity seemed limited. Whilst there were a number of data releases during the week, they offered little in the way of impetus for rate movements. German Unemployment figures and French Consumer spending data were notably lower than expected, yet effects on performance were limited.

Rate movements in the run up to the next ECB meeting are not unexpected, but timing of such movements can be difficult to predict given the gravity of data releases and central bank meetings taking place on Thursday next week and the likelihood of trader activity in the build-up. German Retail Sales data, due out this morning, is the only data of note out today that has the potential to directly affect euro performance before the weekend.

Looking to buy or sell euros? Contact your trader now for live rates, news and currency-purchasing strategies.

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Posted May 29th, 2014 by Charles Purdy

Eurozone data disappoints but euro gains against sterling

The performance of the single currency was once again mixed yesterday. The euro lost ground against the US dollar in response to some sub-par data releases from the Eurozone. German unemployment figures were worse than expected, detailing a rise in the number of unemployed people for the first time in six months, rather than the slight fall that was expected. Additionally, monthly French consumer spending data was down on predictions and showed a decrease rather than the expected increase. Both factors caused the euro to weaken against the US dollar, yet did not have enough influence over euro strength to cause a similar reaction in the sterling-euro rate.

Posted May 29th, 2014 by Charles Purdy

Eurozone data disappoints but euro gains against sterling

The performance of the single currency was once again mixed yesterday. The euro lost ground against the US dollar in response to some sub-par data releases from the Eurozone. German unemployment figures were worse than expected, detailing a rise in the number of unemployed people for the first time in six months, rather than the slight fall that was expected. Additionally, monthly French consumer spending data was down on predictions and showed a decrease rather than the expected increase. Both factors caused the euro to weaken against the US dollar, yet did not have enough influence over euro strength to cause a similar reaction in the sterling-euro rate.

Posted May 28th, 2014 by Charles Purdy

What will the ECB do next week?

The single currency had a mixed start to the week as the more notable movements in euro rates were largely experienced as a result of events elsewhere. The euro strengthened against sterling in response to worse-than-expected Mortgage Approvals data in the UK, but weakened against the US dollar as US Durable Goods Orders rose for April. European Central Bank (ECB) President Mario Draghi’s addresses both yesterday and on Bank Holiday Monday proved to be something of a damp squib as his rhetoric remained largely unchanged ahead of the all-important ECB meeting on 5th June.

An array of moderately important data is set to be released from the eighteen-nation bloc today.

Posted May 27th, 2014 by Charles Purdy

Euro awaits next week’s ECB meeting

German Business Climate data disappointed on Friday last week, underlining the declining faith in the Eurozone’s economic recovery. The worse-than-expected figures were the worst we have seen in 2014 and caused general euro weakness. Howevever, it is worth noting that, while the euro did fall against the US dollar, it managed to strengthen slightly against sterling as a result of sterling influences.

While we enjoy a bank holiday in the UK on Monday, European Central Bank (ECB) President Mario Draghi will be addressing the ECB Forum in Portugal. Given that most commentators are almost certain that Draghi will alter policy in his next meeting, traders are likely to react to the address if any further hints are given as to what action is to be taken.

Posted May 23rd, 2014 by Charles Purdy

Euro under pressure as data disappoints

Eurozone data had a more limited effect on euro rates this week, although rate movements were still notable. The euro weakened sharply against both sterling and the US dollar mid-week as a result of strength in those currencies rather than euro weakness. Smaller movements were also seen throughout the week as speculation continued ahead of the European Central Bank (ECB)’s next monthly meeting on the 5th June. The biggest data releases of the week were the French and German Manufacturing figures that came out yesterday. Both sets of figures were worse than expected, with the French figures revealing slight contraction in the sector.

Posted May 22nd, 2014 by Charles Purdy

Will today’s Eurozone manufacturing data save the euro

Sharp movements in euro rates yesterday can be largely attributed to events elsewhere as we saw sterling move to 16-month highs against the single currency and the US dollar push it back below the 1.37 mark. Strong UK Retail Sales data caused rate movements that suggested there is potential for sterling to push higher against the euro if the current run of positive data continues.

More influential data from the Eurozone is expected out today, most notably in the form of the Flash Manufacturing Purchase Managers’ Index (PMI) from Germany and France. The data, due out this morning, is a key indicator of economic performance in the manufacturing sector and can have a considerable bearing on the short term performance of the single currency.

Posted May 21st, 2014 by Charles Purdy

Eurozone worries undermine the euro

The euro fared poorly yesterday as another spate of rate movements were largely attributed to speculation amongst traders and investors. The only data of note to be released from the eighteen-nation bloc was the German Producer Price Index, which came out very marginally lower than expected and had a limited effect on the currency. Since the last meeting of the European Central Bank (ECB), market speculation and interpretation of President Mario Draghi’s words have exacerbated movements in euro rates. The prominent role that such uncertainty has played of late has led to reports that the ECB is considering lengthening the time between each interest rate decision (currently one month) in order to increase transparency and reduce speculation in the interim.

Posted May 20th, 2014 by Charles Purdy

Eurozone still pondering ECB’s next move

The euro had a relatively uneventful start to the week yesterday as it hovered around the 1.37 mark against the US dollar and made modest gains against sterling. There were no major data releases from the Eurozone yesterday, with the only activity of note being an address by the President of the German Central Bank – The Bundesbank – Jens Weidmann. Weidmann’s words did not cause decisive investor action, but did contribute to the continuing uncertainty regarding European Central Bank (ECB) action at the next meeting and any effects as a consequence of such action. While lower interest rates and increased monetary stimulus generally cause a currency to weaken, Weidmann discussed the possibility of such moves having a converse effect as a result of lower bond yields and the fact that such moves are already largely priced into the market.

Posted May 19th, 2014 by Charles Purdy

Eurozone awaits the next steps from the ECB

The euro continued to slouch towards the end of last week, despite seeing some rebounding earlier in the week. Some commentators attributed the single currency’s weakness on Friday to the selling of bonds issued by the members of the eighteen-nation bloc. Large-scale selling of bonds is usually reflective of a lack of faith in the economic state of an area, hence the weakening of the euro. However, it should be noted that rate movements were more limited than earlier in the week.

We are likely to see continued movement whilst key players continue to speculate on European Central Bank (ECB) President Mario Draghi’s next move.

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