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Posted March 6th, 2015 by Charles Purdy

Euro has a very tough week

It was a big day on Thursday for the euro as it managed to hit new lows against sterling and the US dollar, hitting the lowest rate since September 2003 against the US currency. This was due to the European Central Bank (ECB) announcing specifics on its €1 trillion euro stimulus program. The central bank announced the program back in January to start the €60 billion a month instalments on the 9th March and this will continue up until at least September 2016. Interest rates remained at an all-time low at 0.05% as investors expected. The quantitative easing details will likely force the euro to weaken further.

In other news, manufacturing orders from Germany were reported at a 3.9% decrease, vastly down on December’s figure of a positive 4.2%. Eurozone growth figures are released this afternoon, forecast to improve from 0.8% to 0.9% – should this happen, we could potentially see a short-term boost for the single currency.

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 March 5th, 2015 by Charles Purdy

Euro under pressure (again)

On Wednesday the euro hit an eleven year low against the US dollar, breaking down through the 1.11 barrier following the release of mixed Eurozone economic reports. It struggled against the majority of its peers. Earlier on Wednesday the Eurozone services Purchasing Managers’ Index moved down to 53.7 in February in comparison to the forecast of 53.9. Though the figure was higher than January’s final reading of 52.7 it still indicated that service sector activity expanded at a slower pace than initially estimated.

Today we will receive further details of the European Central Bank (ECB)’s stimulus program in February. This should give more clarity on the package and how it will be rolled out.

Posted February 20th, 2015 by Charles Purdy

Euro struggles as Greece fails to extend its bailout package

It was a another painful day for the euro yesterday, with the single currency falling to fresh 7-year lows against sterling, whilst falling to the lowest level against the US dollar all week. The euro continued its decline as it was reported that Germany rejected a proposed bailout extension request from Greece. Athens faces the prospect of running out of money by the end of the month should a deal not be agreed. The European Finance Ministers meet again today and reports suggest that the German leaders are closer to agreeing on a deal. The European Commission had welcomed the bailout extension request earlier in the week, as it was deemed a reasonable compromise and would therefore bring stability to the Eurozone.

Posted February 6th, 2015 by Charles Purdy

No respite for Greece or the Euro

It had initially been a good week for the euro until Thursday. The Greek Finance Minister had been doing his rounds of other European Finance Ministers and everything sounded positive. He then met the European Central Bank (ECB) on Wednesday and his German counterpart on Thursday who gave him a very cold shoulder. The ECB then put the boot in making it very difficult if not impossible for Greek banks to borrow. Not nice but I am not sure what else the ECB and the Germans can do given the likelihood of other southern states coming with their begging bowls if they acquiesce.

Posted February 5th, 2015 by Charles Purdy

Euro weakens against sterling as ECB plays hardball

After a good day the euro fell sharply against sterling as the European Central Bank (ECB) announced that they would stop accepting Greek government debt as collateral from Greek banks as of the 11th February. As the ECB is their lender of last resort and the only lender willing to lend to the Greek banks at this moment it is clear that the ECB is playing hard ball with the Greeks and their attempts to renegotiate the agreed austerity measures. Against the US dollar though the euro just about held its own as data out of the US wasn’t as positive as hoped for.

Posted January 23rd, 2015 by Charles Purdy

Euro keeps on weakening

The rot for the euro started on Wednesday as speculation grew surrounding the likely level of quantitative easing that the European Central Bank (ECB) was expected to announce in their press conference the following day. As it was the speculation was not that far off the reality as the ECB stated that they will pump €60 billion monthly into the Eurozone economy from March this year until September 2016 – meaning that €1.2 trillion will be pumped into the Eurozone to try and stimulate its struggling economy. This weakened the euro further against losses suffered on Wednesday. Draghi also pointed out that inflation for the bloc will remain low for the short term, with this gradually increasing towards the back end of the year.

Posted January 22nd, 2015 by Charles Purdy

The moment of truth for the ECB

We have been seeing two-way movement in the euro in the lead up to today’s European Central Bank’s (ECB) Interest rate and Quantitative Easing (QE) programme decision. Reports yesterday afternoon suggested that the ECB will put forward a €600 billion per annum program of QE to last until the end of 2016, and will look to start buying bonds from March this year.

Interest rates are expected to remain at an all-time low at 0.05%, but the focus will be on the press conference that follows, where we expect them to announce their QE plans. Will it match what was rumoured yesterday, only time will tell, but whatever the announcement is we are likely to experience quite a bit of movement in the euro exchange rate during the course of the today.

Posted January 21st, 2015 by Charles Purdy

No Eurozone news today, will it be a “day of rest” for the Euro

Euro had a quiet and relatively stable Tuesday. Negative German Producer Price Inflation (PPI) – the lowest since August 2009 – moved in the same direction as the Eurozone inflation, while slightly worse-than-expected trade balance figures for Italy looked set to weaken the euro further against its peers. However, positive German economic sentiment (a leading indicator for economic health) – the highest since August 2008 – benefitted the euro.

With no economic data out for the single currency today, investors will look at it for a day’s rest before the European Central Bank (ECB) interest rate decision and press conference on Thursday, where it is deemed highly likely that the ECB will outline their proposed asset purchasing program.

Posted January 20th, 2015 by Charles Purdy

Thursday is this week’s key day for the Euro

It was a quiet day in the markets yesterday in terms of data for the Eurozone. With only the current account figures out Monday morning we saw a slight dip with a figure that was lower than expected; however, this still showed a healthy balance sheet for the Eurozone economy.

With the euro still trying to recover from losses suffered at the hands of the Swiss National Bank (SNB) last week, we saw a gradual recovery on Monday as investors started to invest back into the single currency. However, with the currency still trading at highs not seen since 2008, we could find this euro strength short-lived with news of their asset purchasing programme and Greek elections being the driving factor for euro weakness leading up to the end of the month.

Posted January 19th, 2015 by Charles Purdy

Euro under pressure

The euro and the Eurozone are under pressure. Last week turned out to be one of the worst weeks in years for the euro, particularly against the US dollar as it hit 11-year lows and against sterling as it 7-year lows. And this week is likely to increase the uncertainty and pressure given the various key events and releases that are happening.

The situation worsened with downbeat Eurozone inflation data, causing further expectations that the European Central Bank (ECB) will announce additional stimulus measures in its upcoming policy statement on Thursday. It would seem now that the ECB is left with no choice but to implement quantitative easing on a large scale with the central bank expected to pump €500 billion to €1 trillion into the Eurozone economy.

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