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Posted November 14th, 2014 by Charles Purdy

A quiet week for the euro; but, strong against sterling

All in all, it was a very quiet week for the euro with little on which to report. With bank holidays in a number of member countries on Monday and Tuesday and very few data releases elsewhere, the euro remained relatively range-bound against the majority of its trading partners, bar a very week sterling.

Wednesday saw industrial production figures for the region come out as forecast; but had little bearing on the marker. Significant gains were made against sterling, but that was down to events in the UK rather than any data out of the Eurozone.

Today promises to be more interesting, as quarterly growth figures from across the Eurozone are released this morning. Analysts are forecasting a slight improvement on the previous release, but a close eye will be kept on German and French figures, as uncertainty surrounds both these figures.

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 15th, 2014 by Charles Purdy

Euro slightly less ugly than sterling

The euro lost out against the majority of its peers yesterday, bar a very weak sterling, with a combination of factors weighing on the 18-nation currency. Industrial production figures for the region showed a contraction, coming in at -1.8% which was below forecast and almost 3% down on the previous month’s release.

This was followed by German economic sentiment data, which, following a run of worrying data from the Eurozone’s talismanic economy, was not expected to come in anywhere near last month’s result of 6.9 (anything above 0.0 illustrates positive sentiment). However, few had forecast it to come in as low as it did (a worrying -3.6) and as a result, further pressure was put on the euro.

Posted October 1st, 2014 by Charles Purdy

Euro under pressure as Eurozone economy falters

It was another difficult day for the euro, with a handful of data releases providing further evidence of the bloc’s worsening economic conditions. German retail sales figures came in above forecast, but these coincided with significantly worse-than-forecast unemployment figures. Later yesterday morning we had the consumer price inflation figures for the entire Eurozone which came in at 0.3%, which was as forecast but worryingly low. As a result, the euro fell to two-year lows against the US dollar, and came very close to six-year lows against sterling.

The European Central Bank meets tomorrow, with many forecasters predicting a move towards more aggressive stimulus measures, which will likely further push down the euro’s value.

Posted September 19th, 2014 by Charles Purdy

Euro suffers heavy losses against sterling

The euro started off relatively flat at the start of the week but suffered heavy losses against sterling following the Scots decision to reject independence.

There was some data released with German Economic Sentiment figures coming in above forecast whilst the European Central Bank put a large emphasis on the significance of waning inflation levels across the bloc. The yearly Eurozone inflation figure of 0.4% was released on Wednesday afternoon and, although still worryingly low, came in above the forecasted figure of 0.3%, which provided some respite. However, the market’s reaction to this data was relatively muted with the weeks focus on the Scottish referendum for independence (which came out overnight).

Posted September 8th, 2014 by Charles Purdy

Euro less “ugly” than sterling for the time being

Scottish Independence has turned the euro, in the eyes of the market, into the less ugly one of the two ugly sisters. Not a mean feat given that European Central Bank (ECB) President Mario Draghi has signalled for a minimum of 700 billion euros of aid for the stalling Eurozone economy, whilst promising to ‘significantly steer’ the ECB’s balance sheet nearer to levels in early 2012, to 2.7 trillion of euros, compared to the 2 trillion currently. On Friday the key data release was revised growth figures, which were in line with expectations and thus having little impact on the currency.

Posted September 5th, 2014 by Charles Purdy

Euro suffers heavy losses following surprise easing measures from ECB

The highlight of the week was the euro having the rug pulled from underneath it yesterday, dropping down to July 2013-lows against the US dollar following an unexpected move from the European Central Bank (ECB) to cut all three of their main interest rates by 0.1%. This included dropping its main refinancing rate to a historic low of 0.05%, whilst lowering the deposit rate to -0.2%! In the press conference following the decision, policy-makers also announced that the central bank would introduce additional stimulus measures in the form of asset-backed securities purchases.

The ECB caught the market by surprise yesterday, but highlights how conditions have continued to deteriorate across the 18-nation bloc, with both inflation and employment levels coming in below even the most pessimistic expectations from the start of 2014.

Posted August 7th, 2014 by Charles Purdy

Today’s ECB meeting may well undermine the euro

Yesterday was a fairly bleak day for the Eurozone as Italy unexpectedly slipped back into recession and German factory orders dipped to far below what was forecast. As tensions in Ukraine remain and a consistent recovery in the eighteen-nation bloc remains elusive, the euro will continue to be under pressure.

Effects of yesterday’s poor data were relatively limited and there were no huge movements against sterling or the US dollar. However, sharper rate movements are likely to be seen today when the European Central Bank (ECB) releases its monthly interest rate decision and President Mario Draghi makes his address. As more aggressive monetary policy options have expressly been kept open by Draghi and economic data stubbornly fails to improve, any hints that the ECB will further loosen policy is likely to cause euro weakness.

Posted August 6th, 2014 by Charles Purdy

Euro awaits Thursday’s ECB meeting

Yesterday’s Eurozone economic data releases did little to affect the performance of the single currency. Italian services data was worse than expected, Spanish services data was better and the Eurozone Retail Sales figures came out largely as expected, meaning that movements in euro rates occurred largely as a result of events elsewhere. More notably, events in the UK and the US caused the euro to weaken against both sterling and the US dollar.

This morning sees the release of German Factory Orders figures. Last month we saw evidence of a decrease in production as factory orders were down 1.7%. However, today’s data is expected to show a minor increase, which may have a small impact on euro performance.

Posted July 29th, 2014 by Charles Purdy

Eurozone steady in difficult circumstances

The euro had a mixed Monday as it swung both ways against its major peers. Pressure still remains on the currency as there are few signs of Eurozone economic stabilisation any time soon with unemployment figures at nearly 12% and very low inflation at 0.5%. There were no large shifts for the euro yesterday as it awaits more important news, due later this week.

Today we see Business and Consumer confidence data from the Eurozone. Previously reported at -7.5, it is now forecast at -8.4. Results that are worse-than-forecast stand to have a significant impact on the euro. The Eurozone also sees more important data on Thursday, in the form of inflation and unemployment figures.

Posted July 17th, 2014 by Charles Purdy

Euro continues to weaken in the absence of influential data

The euro continued weakened yesterday in the absence of any influential data released from the Eurozone. Trade balance figures for the eighteen-nation bloc – showing the difference in value between imported and exported goods and services – came out worse than expected; however, the effect of these figures is muted by the fact that the equivalent data for individual states is released at an earlier date. As a result, the single currency continued to weaken against both sterling and the US dollar, although at a slower pace than the day before.

Today, the monthly Consumer Price Index (CPI) is set to be released, providing a key indication as to levels of inflation in the Eurozone.

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