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Posted January 8th, 2015 by Charles Purdy

Euro also still suffering

Strong German employment data was not enough to counterbalance the impact of yesterday morning’s Eurozone inflation figures, which showed that the bloc had, as a whole, slipped into deflation. The result was that we saw the euro fall to fresh nine-year lows against the US dollar, with the inflation figures giving weight to the argument for increased stimulus measures. European Central Bank (ECB) President Mario Draghi looks to have been backed into a corner, with no choice but to ramp up asset purchases. Some analysts are betting that we will see a decision made as early as this month, and any such decision will likely undermine the euro further.

Looking to today, the only fundamental release to keep an eye on will be European retail sales released this morning.

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 January 8th, 2015 by Charles Purdy

Euro also still suffering

Strong German employment data was not enough to counterbalance the impact of yesterday morning’s Eurozone inflation figures, which showed that the bloc had, as a whole, slipped into deflation. The result was that we saw the euro fall to fresh nine-year lows against the US dollar, with the inflation figures giving weight to the argument for increased stimulus measures. European Central Bank (ECB) President Mario Draghi looks to have been backed into a corner, with no choice but to ramp up asset purchases. Some analysts are betting that we will see a decision made as early as this month, and any such decision will likely undermine the euro further.

Posted December 17th, 2014 by Charles Purdy

Euro still holding its own

The euro started yesterday in good stead, taking support from a raft of data released in the early session. Purchasing Managers’ Index (PMI) health figures from both the manufacturing and services industries were largely positive, and German ZEW economic sentiment data came in at an impressive 34.9 (anything above 0.0 represents a positive response). After a strong morning the euro saw much of its gains erased, however, particularly against the relatively strong sterling.

Looking forward to today we have monthly inflation figures from across the Eurozone. Inflation levels have been closely watched over recent months, with the European Central Bank (ECB) President Mario Draghi citing inflation levels to be the main driver behind any decision to push on with quantitative easing (QE).

Posted December 4th, 2014 by Charles Purdy

Euro under pressure from poor data and QE

A difficult day for the euro yesterday saw it trek back to two-year lows against the US dollar, and to month-long lows against sterling. Early in the morning saw the release of Purchasing Managers’ Index (PMI) data from the services industry, which, coming in below forecast, was enough to undermine the single currency ahead of today’s speech by Mario Draghi, President of the European Central Bank (ECB) following their monthly meeting. Monthly retail sales figures were also short of expectations, and the currency’s poor performance was exacerbated by both the US dollar and sterling having particularly strong days.

Today again promises to be an interesting one for the euro.

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 7th, 2014 by Charles Purdy

Despite disappointing German data, the euro has a good Monday

The only European data release of significance yesterday were German monthly factory orders released early in the morning. Eyes have been on German data over recent weeks, with the talismanic European economy having showing some signs of fatigue with a string of disappointing releases. Yesterday’s factory orders did nothing to buck the trend, coming in below forecast, 10.6% down on the previous month’s figure. Despite this, the euro did somehow gain ground against both sterling and the US dollar, although this trend has started to reverse this morning

It looks set to be a relatively quiet week in terms of both economic data and risk in the Eurozone, but Thursday’s speech from central bank President Mario Draghi could trigger some volatility.

Posted October 3rd, 2014 by Charles Purdy

ECB’s inaction see the euro enjoy a “day in the sun”

The euro started the week on unstable footing, losing ground from Monday to Wednesday. A couple of disappointing data releases from Germany, the European bloc’s flagship economy, came in the form of inflation figures on Monday and Manufacturing Purchasing Managers’ Index on Wednesday. The figures were further indication of the troubled times that the Eurozone is facing, with the thus-far unfettered German economy starting to show a soft underbelly.

The figures early in the week fuelled speculation that when European Central Bank (ECB) President Mario Draghi spoke yesterday he would give some categorical indication of further stimulus measures (most likely in the form of asset-back security purchases).

Posted September 30th, 2014 by Charles Purdy

Eurozone inflation data the key release for today

Monthly inflation data out of Germany, Europe’s most influential economy, gave some respite to the euro yesterday. The figures came in at a flat 0%, marginally better than the -0.1% that most forecasters were predicting. European Central Bank (ECB) President Mario Draghi had stressed the importance of avoiding negative inflation rates for the Eurozone, so the figures provided a glimmer of hope. This morning’s year-on-year figures for the whole bloc will also be watched closely in the market.

We may see the euro relatively range-bound over the next few days ahead of Thursday’s ECB press conference, as traders will be looking for clues as to Draghi’s medium-term strategy.

Posted September 23rd, 2014 by Charles Purdy

ECB Chairman highlights deflation as his main worry

Yesterday afternoon saw a speech from the President of the European Central Bank (ECB), Mario Draghi, in which he outlined plans for medium-term monetary policy. Markets were not impacted too significantly, as much of the content of the speech was widely expected. Draghi maintained his position that the threat of deflation across the bloc remains his primary concern, and that, should we see the situation worsen, he will resort to stimulus measures in the form of asset-backed security purchases. As a result, expect future inflation data to be closely scrutinised by traders, as any announcement of stimulus measure will likely further weaken the euro.

Posted September 10th, 2014 by Charles Purdy

Euro holds steady

The euro held relatively steady yesterday, still close to 14-month lows against a strengthening US dollar, but gaining against sterling in the late afternoon. With few data releases of influence so far this week, the single currency has been relatively range-bound, as traders look towards tomorrow’s speech from European Central Bank Governor, Mario Draghi.

There is some sentiment in the market that Draghi may favour a weaker euro as he looks to stimulate slowing inflation levels across the Eurozone.  As a result, we could see Draghi adopting a fairly negative rhetoric in an attempt to ‘talk down’ the currency. Events to keep an eye on today are industrial production figures out of France, and the German 10-year bond auction.

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