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Posted October 31st, 2014 by Charles Purdy

Euro suffers as data broadly disappointing

It was a relatively quiet start to the week for the Eurozone, with the majority of data out Thursday and today. Thursday saw weaker-than-expected Inflation figures for both Spain and Germany. The only positives for the week were Spanish growth figures coming out as expected, and the fall in German unemployment – which may lead to a positive outlook for Eurozone unemployment data out today. Germany, the Eurozone’s powerhouse, has been under the spotlight recently with less than impressive figures over the past few weeks, as well as talk that they may need to lower their tax revenue forecast due to weakening economic conditions.

This morning we may experience a busy day for the euro. With German retail sales and French consumer spending figures both forecasted to come out weaker than the previous month, any surprises could cause significant shifts in euro markets. The main focus be on the Eurozone’s inflation figures as well as on the unemployment rate. Out of the spotlight recently, Greece may see themselves in more trouble. Prime Minister Antonis Samaras has until February to pull together a supermajority in the national parliament to elect a new president. Failure to do so will allow the anti-bailout opposition parties to force a snap election.

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 October 30th, 2014 by Charles Purdy

How will today’s and tomorrow’s Eurozone data effect the euro?

Yesterday was another unremarkable day for the euro until the US Federal Reserve meeting announcement late last night which caused the euro to fall very quickly against the US dollar, as the spectre of rising US interest rates increased.

Today promises to have more local influences with European data coming thick and fast over the next 48 hours. Out of Germany today we have inflation and unemployment data, and out of Spain we have inflation and growth data. There is a lot of uncertainty towards the releases; forecasts are wide-ranging as recent releases have been very inconsistent. As a result, we could see some significant movements in euro markest today, with the possibility of some unexpected releases.

Posted October 29th, 2014 by Charles Purdy

Euro mainly affected by events from elsewhere

With a quiet day on the data releases front yesterday, the euro was mainly affected by events elsewhere. The single currency held relatively flat against the majority of its peers, but poor US data saw it gain almost half a percent against the dollar.

Eyes will be on the US again today, with the decision from the US Federal Reserve over tapering of Quantitative Easing (QE); any announcement that QE will continue should see a US dollar selloff, meaning a likely euro gain in response. Traders will also be looking towards tomorrow and Friday, with inflation and unemployment data from across the bloc being released.

Posted October 28th, 2014 by Charles Purdy

Despite poor German data the euro holds its own

After opening the morning session on fairly firm footing thanks to the positive news regarding the European banks’ stress tests over the weekend, the euro dropped back into all-too-familiar territory following the release of some German data. IFO Business Climate figures, the results of a survey of 7,000 businesses’ opinions toward the current economic environment, came in below forecast and at their lowest level since 2012 – putting the euro on the back foot as it embarked on this week’s trading.

Today is light in terms of Eurozone data, with the monthly German import prices the only release of note. Traders will have one eye on Thursday and Friday, with a raft of growth, inflation and employment figures coming from across the bloc.

Posted October 27th, 2014 by Charles Purdy

Eurozone survives bank stress test results

Friday saw the euro hold flat against the majority of its peers as traders acted with caution ahead of the release on Sunday of the stress tests on European banks. The expectations were that we would see Greek, Cypriot, Portuguese and Spanish banks come in with some worrying figures, but apprehension was offset by some positive data out of German the Eurozone’s flagship economy. In actuality the bank stress tests seem to have had less market impact than expected. Italy seemed to have the longest list of banks that needed additional funds and quite remarkably Spain had none. It has to be remembered that a lot of banks have been raising additional funds in the last year so overall it seems these stress tests have had the desired results.

Posted October 24th, 2014 by Charles Purdy

Euro weakens slightly

The euro had a subdued week, dropping off against many of its peers amid growing speculation that the European Central Bank (ECB) will look to further advance stimulus measures. Rumours were circulating that bond and asset-backed security purchases could extend to as much as €3 trillion in an attempt to offer some much-needed liquidity to banks and other corporations. Reuters reported that we could even see the ECB buying up chunks of corporate debt in an attempt to inject some life into the region’s economy and boost stagnating inflation levels.

Yesterday saw the euro given a lifeline however, in the short term at least, as Purchasing Managers’ Index (PMI) figures showing the performance of the manufacturing and services industries across the region came in higher than forecast.

Posted October 23rd, 2014 by Charles Purdy

Euro under pressure

There were more whispers in the market over the last 24 hours that the European Central Bank (ECB) will look to stronger stimulus measures in the medium term, pushing the single currency down further from Tuesday’s poor performance. Despite making ground against a weak British pound in the early session, sterling recovered by almost a cent in the afternoon. Similar losses were seen against the US dollar. Reports emerged that the ECB may look to buy-up corporate bonds to the tune of as much as €3 trillion, giving some much-needed liquidity to banks and other corporations in an attempt to inject some life into the region’s economy and boost stagnating inflation levels.

Posted October 22nd, 2014 by Charles Purdy

Is the ECB finally coming to the rescue?

The euro dropped off yesterday, losing ground against the majority of its peers. This involved losing half a percent against both the US dollar and the British pound. Speculation is growing that the European Central Bank (ECB) will look to further advance stimulus measures, as covered bonds were purchased for the second consecutive day. There was also a report released by Reuters stating that the ECB is considering buying up chunks of corporate debt. There are some reports surfacing that suggest the ECB will as much as double its previous plans – a further divergence in policy from that of the US Federal Reserve – giving more fuel to the sentiment that the US dollar will continue to strengthen against its European counterpart.

Posted October 21st, 2014 by Charles Purdy

Euro continues to hold its own

With the week’s trading opening yesterday morning, growth concerns across the Eurozone continued to weigh on the single currency, which opened slightly down on last week’s subtle gains against the US dollar. Movement yesterday was understated, however, with minimal events of note in both the domestic and global markets. The euro was particularly flat against sterling.

We expect a similar pattern over the next 24 hours, with sterling-euro traders not likely to make many moves ahead of tomorrow morning’s Bank of England (BoE) interest rate release and asset-back purchases votes. European manufacturing industry Purchasing Managers’ Index figures (measuring the industry’s performance) on Thursday will also be watched closely.

Posted October 20th, 2014 by Charles Purdy

Lots of data being released this week which could undermine the euro

With the USA rethinking their stance on monetary policy, some of the pressure on the euro was relieved which saw it push towards three week highs against the US dollar. There have been doubts surrounding the US Federal Reserve’s plans to end quantitative easing at the end of this month. However, the weakened state of the European economy should make any long term positive momentum a tough task for the euro.

Looking forward to the week ahead, we will see Purchasing Manager’s Index (PMI) figures out across Europe. Data is expected to show growth stagnating for the Eurozone as a whole and contracting for the German economy.

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