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Posted January 12th, 2015 by Charles Purdy

Will the ECB boost the Eurozone economy this week?

Fortunes were mixed for the euro at the end of last week, seeing no single, direct shift in the currency from factors within the Eurozone. The only data it had to go on was industrial production, which showed an unexpected decline in both France and Germany. With this, the euro fell against sterling, but rose over the day against a weaker US dollar. However, the continued negativity meant that the multi-nation currency was still set for a weekly decline for the fourth week in a row, the longest run since September of last year.

This week has a few releases of note that could impact on the currency’s performance, starting with a monthly economic report from Germany. Tomorrow sees the more significant data start with the German ZEW Economic statement, as the euro looks to its largest contributor for support.

Mid-week is somewhat quieter with just the Spanish unemployment rate due, ahead of a much busier Thursday. This is set to be the most significant day, as the European Central Bank (ECB) will release their monthly interest rate decision. While this is unlikely to show much change in itself, the accompanying press conference is always closely scrutinised for any clues as to its outlook for the area. This is particularly relevant thanks to the speculation over quantitative easing and the political uncertainty in Greece. Has Germany finally acquiesced and agreed that the ECB should re-energise the Eurozone economy through a programme of extra funding? If they have this will bring further pressure on the euro.

Friday then rounds off the week with a number of Purchasing Managers’ Index (PMI) figures, with both manufacturing and services due from France and Germany, as well as the figures for the Eurozone as a whole.

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 9th, 2015 by Charles Purdy

The euro’s freefall continues…..

Deflation has returned to the Eurozone as energy costs fell, increasing the likelihood of a programme of quantitative easing being introduced by the end of the month. Even the European retail sales figures being ahead of forecast were not enough to halt the euro’s freefall against the US dollar. The figures, coming in at 0.6% against a 0.3% prediction, were released yesterday morning, but a strong US dollar saw the euro drop below 1.18 for the first time in nine and a half years. Comments made by the European Central Bank (ECB) President also undermined the euro, with Mario Draghi stating that stimulus measures may include sovereign-bond purchases.

Posted December 8th, 2014 by Charles Purdy

A lack of data this week may be good for the euro

Friday was a relatively uneventful day for the euro, with any movements largely being triggered by events elsewhere. It took some strength in the early session following the release of German factory orders data, but any gains were given back in the afternoon following US non-farm payroll figures. US dollar strength saw the euro drop off against its American counterpart, and ground was also lost against sterling. Historically, if the US dollar strengthens significantly we see the euro weaken against its other peers, as traders sell off euros to buy up a strengthening dollar.

This week is a relatively quiet one on the data front, with industrial production figures from across the European bloc being the main fundamentals to keep an eye on.

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