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Posted August 29th, 2014 by Charles Purdy

Euro under pressure

A tough week for the euro has seen it continue to slide against the US dollar while losing some ground against sterling. A quiet day on Monday saw the euro trade relatively flat across the board. Tuesday saw the euro hit a fresh low against the US dollar as consumer confidence in the US was shown to have increased throughout July. In contrast to this, data from Germany on Wednesday showed that consumer confidence had fallen in the Eurozone’s largest economy. Despite this, the euro strengthened on the back of comments suggesting that the European Central Bank (ECB) may not have to resort to drastic measures any time soon to counter the threat of deflation. This optimism in the currency was short-lived however, with news on Thursday of increased unemployment in Germany, seeing the euro drop across the board.
Today sees the release of inflation data from across the Eurozone. With measures recently put in place to counter the threat of deflation, investors will be keeping a keen eye out for any increase in this figure. Any surprises could cause movements in euro markets.

If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

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Posted August 28th, 2014 by Charles Purdy

Euro awaits tomorrows inflation data

The euro gained some strength for the first time in four days, moving it away from four-year lows against the US dollar. A Reuters report released yesterday referenced anonymous European Central Bank (ECB) sources, stating that no stimulus measures will be implemented unless we see a serious risk of deflation. As mentioned in yesterday’s note, the ECB has cited inflation as the primary gauge for forthcoming monetary policy decisions. As such, eyes will still be firmly on tomorrow’s yearly flash estimate, forecasted to come in at 0.3%. Today’s German preliminary monthly inflation figures will also hold some sway, as will European business and consumer confidence data released this morning.

Posted August 27th, 2014 by Charles Purdy

Euro under pressure, key inflation data at the end of this week

We saw the euro drop off to fresh lows against the US dollar early yesterday morning, hitting its weakest level since this time last year. As the US dollar continues to gather momentum across the board, the euro, in turn, is increasingly undermined by European Central Bank (ECB) policy that is seemingly shifting further towards increased support measures.

We could see the euro somewhat range-bound this week as traders look towards Friday’s inflation data, with traders unwilling to make any significant bets before the release. Inflation has been singled out as the primary gauge for future monetary policy decisions, and the figures are forecast to come in at 0.3% year-on-year.

Posted August 26th, 2014 by Charles Purdy

Euro under pressure as ECB worries about deflation

The euro continued to wane towards the end of last week and lost further ground against sterling and the US dollar over the bank holiday Monday, notably being pushed back above the 1.25 threshold by sterling. Comment made by the President of the European Central Bank (ECB) in Jackson Hole made it very clear how worried he is about the state of the Eurozone economy and the low level of inflation and that they were geared up to “do whatever it takes” to ensure that the Eurozone economy didn’t suffer deflation. This weakened the euro across the board.

Influential data releases are more evenly spread this week.

Posted August 22nd, 2014 by Charles Purdy

Euro struggles as growth remains elusive

The euro has continued to struggle as the eighteen-nation bloc failed to provide any signs of improving economic sentiment. Losses were felt keenly against the US dollar as the euro-US dollar rate reached its lowest point in 11 months. Performance against sterling was more variable and we saw rate movements in both directions, which were largely driven by UK data. The main economic indicators of the week came in the form of manufacturing data from the Eurozone powerhouses; however, as releases came out largely as predicted, the effect of this data was limited.

The President of the European Central Bank (ECB), Mario Draghi, is due to speak on labour markets this evening over in the US.

Posted August 22nd, 2014 by Charles Purdy

Euro struggles as growth remains elusive

The euro has continued to struggle as the eighteen-nation bloc failed to provide any signs of improving economic sentiment. Losses were felt keenly against the US dollar as the euro-US dollar rate reached its lowest point in 11 months. Performance against sterling was more variable and we saw rate movements in both directions, which were largely driven by UK data. The main economic indicators of the week came in the form of manufacturing data from the Eurozone powerhouses; however, as releases came out largely as predicted, the effect of this data was limited.

The President of the European Central Bank (ECB), Mario Draghi, is due to speak on labour markets this evening over in the US.

Posted August 21st, 2014 by Charles Purdy

Will todays Eurozone data undermine the euro?

Movements in euro rates yesterday reflected a continuation of general trends over the last few months and the dominance of external influences. The single currency continued to depreciate against the US dollar yesterday, causing the euro-US dollar rate to reach its lowest point in 11 months. As the Eurozone continues to struggle with low inflation and stagnating economies, the USA’s recovery looks evermore steadfast. This contrast has been reflected in the performance of the respective currencies over the last four months, with the euro steadily losing ground against the US dollar. We also saw the euro weaken slightly against sterling as the UK Monetary Policy Committee (MPC) interest rates votes provided a boost to the UK’s currency.

Posted August 20th, 2014 by Charles Purdy

Euro – up against sterling, down against the dollar

The lack of influences from within the Eurozone meant that movements in single currency rates occurred largely as a result of events elsewhere yesterday. The euro strengthened against sterling as a result of poor inflation data from the UK, while it weakened against the US dollar in response to stronger than expected Building Permits figures. The only data of any significance from the eighteen-nation bloc was current account data, which disappointed and illustrated a lower-than-expected flow of capital into the Eurozone.

Today’s line-up is not dissimilar from yesterday’s as once again we have high-impact events taking place in the UK and the USA – in the format of activity from the Monetary Policy Committee (MPC) and Federal Open Market Committee (FOMC) respectively – yet little of note from within the Eurozone.

Posted August 19th, 2014 by Charles Purdy

Events elsewhere could influence the euro

In a generally quiet day in terms of influential events, the euro weakened slightly against a number of other major currencies. The Bundesbank – the German central bank – released its monthly report which saw an echoing of the sentiments being expressed by the European Central Bank (ECB). The Bundesbank report expressed concern over Germany’s economic outlook and continued to cite the current sanctions in place that restrict trade with Russia as a key factor in lowering the nation’s growth expectations for 2014.

Eurozone data releases are weighted towards the end of this week; however, sharp rate movements could still happen today as the schedule of events is livelier for the UK, USA and elsewhere, and may affect euro performance.

Posted August 18th, 2014 by Charles Purdy

Despite gains against sterling, euro still under pressure

Despite parts of Europe enjoying a bank holiday on Friday, the single currency managed to make moderate gains against sterling and the US dollar. There has been little data to improve the economic outlook for the Eurozone over the last few days, yet the euro has avoided further severe weakening against major currencies and has made considerable ground against sterling.

Influential events are weighted towards the end of the week this week, with Thursday and Friday likely to provide the most impetus for rate movements. Monthly manufacturing data is due from France and Germany on Thursday. Even the Eurozone powerhouses seem to be losing momentum of late, and key indicators such as manufacturing figures will help to determine whether output is indeed flat-lining or whether there is hope yet for the stalling recovery.

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