Call Free Phone Now:0808 163 0102
Outside the UK: +(44) 207 898 0541 Request a Call Back
 
  Daily Currency News Euro US Dollar Educational Articles  
 
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. This morning, we are offered another insight into sentiment within Germany as Business Climate figures are due out. This index is produced as a result of a survey of German businesses and provides a useful insight into the economic outlook of Europe’s largest economy. Such figures often have an immediate impact on euro rates. Inflation data from Germany as well as from the Eurozone as a whole are due out on Thursday and Friday respectively. Low interest rates and the remaining threat of deflation have been key factors in determining the monetary policy of the European Central Bank (ECB). ECB President Mario Draghi has stated that more aggressive action to tackle this threat is still a possibility and poor Consumer Price Index (CPI) figures are likely to intensify fears that such action may materialise and therefore weaken the single currency further.

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

Comments are closed.

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 July 23rd, 2014 by Charles Purdy

Euro continues to be out of favour

The euro weakened against both sterling and the US dollar yesterday, not so much in response to any particular data release, but rather as investors and central banks continued to rally to the opinion that the single currency is an unattractive prospect at this point in time. European Central Bank (ECB) President Mario Draghi has kept his options open regarding more aggressive monetary policy, while the Bank of England and Federal Reserve have both given indications that they will be tightening monetary policy and raise interest rates at some point. This has caused the euro to weaken against other major currencies as investors look to move away from euro positions.

Posted July 11th, 2014 by Charles Purdy

Renewed Eurozone crisis fears as Portuguese bank misses repayments

The single currency strengthened steadily against sterling and the US dollar for the early part of this week, moving slowly away from previous levels. In general, there was not a lot of data from the Eurozone this week and rate movements came largely as a result of events elsewhere. However, this changed yesterday when the euro weakened sharply in response to a Portuguese bank missing repayments. This served as a reminder to investors that the Eurozone recovery is very much in its infancy and caused a decline in support for the eighteen-nation currency. By the close of play yesterday the euro had wiped out the gains that had been made earlier in the week.

Posted July 9th, 2014 by Charles Purdy

Euro largely unchanged as events elsewhere dictate market movement

German Trade Balance data came out better than expected yesterday, showing a greater difference in the value between exported and imported goods than was forecast. However, once again the effect of this data was limited and sporadic rate movements against sterling and the US dollar occurred largely as a result of events elsewhere. Despite movements throughout the day, the euro ended the day in a similar position to where it started against these two currencies.

This evening, European Central Bank (ECB) President Mario Draghi is due to speak in London. His words have the potential to spur movements in euro rates given his instrumental role in implementing further changes in monetary policy.

Posted July 1st, 2014 by Charles Purdy

Eurozone inflation still too low for comfort

Monday was a mixed day for the euro as we saw it strengthen against a retreating US dollar, whilst seeing a slight weakening against sterling. These movements were perhaps surprisingly limited given the data that was released yesterday. Eurozone Consumer Price Index (CPI) data came out marginally under what was expected, indicating that levels of inflation are around 0.5% in the eighteen-nation bloc. This is still far less than the targeted 2% and was one of the key reasons for European Central Bank (ECB) President Mario Draghi lowering interest rates. Meanwhile, German Retail Sales figures were well below what was expected, showing a contraction of 0.6%, rather than the low level of growth that was expected.

Posted June 27th, 2014 by Charles Purdy

Quiet week for the euro

The euro bucked recent trends in the early part of this week, making gains, albeit moderate ones, against both sterling and the US dollar. Despite this, yesterday’s shaper rate movements in the opposite direction reversed this. In general, data releases from the Eurozone have had a muted influence this week, as trader activity and events elsewhere have provided stimulus for rate movements. We are likely to see this change as data releases start to provide a more clear-cut picture of how European Central Bank (ECB) President Mario Draghi’s recent policy changes are affecting the recovery of the eighteen-nation bloc. However, this week the figures have been mixed and largely predictable.

Posted June 19th, 2014 by Charles Purdy

Euro strengthens slightly against sterling and US Dollar

A dearth of Eurozone data yesterday meant that the movements in euro rates occurred largely as a result of events elsewhere. The release of the Monetary Policy Committee minutes meant the single currency fared better against sterling, and there was strength against the US Dollar thanks to speculation ahead of the Federal Open Market Committee (FOMC) interest rate decision. The day’s positive movements mark a departure from the more recent general trends, and as such were limited.

Today’s Eurogroup meetings, which will be attended by European Central Bank (ECB) President Mario Draghi and Finance Ministers from across the eighteen-nation bloc, may play a role in determining whether the euro can continue to strengthen against its major trading partners.

Posted June 11th, 2014 by Charles Purdy

Euro under pressure

French Industrial Production data offered no surprises yesterday as it detailed a 0.3% increase in the level of production, as was expected. As a result, movements in major euro rates came largely as a result of events elsewhere. The single currency lost ground sharply against sterling in response to positive manufacturing figures from the UK in the morning, before recovering (to an extent) throughout the rest of the day. The euro also continued to lose ground against the US dollar.

Euro movements are once again difficult to predict today, given the lack of influential data due. However, the eighteen-nation currency could continue its slump following the action taken by European Central Bank (ECB) President Mario Draghi last week – the euro seems to have very few committed supporters as this moment in time!

© Copyright 2010 Smart Currency Exchange. All Rights Reserved.
Site by Iniquus