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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. The only doubts that it will happen are due to Germanys extreme resistance to this programme and their unwillingness to underwrite the debts of the whole of the Eurozone.

Additional key data releases are as follows. This Tuesday sees the release of ZEW business confidence from Germany, forecast to increase from last month’s figure of 10 to 15. The Eurozone will also make this month’s interest rate announcement on Thursday; the rate is currently standing at 0.05%, but given the way that the Euro is heading we could be looking at another interest rate cut for the single currency. We also have a raft of Purchasing Managers Indices for the Eurozone and some of its member states on Thursday which, on the whole, are expected to be show most Eurozone economies growing which would be helpful.

And then we have the first stage of the Greek election over next weekend which adds another level of uncertainty and instability to the euro.

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 5th, 2015 by Charles Purdy

A faltering start to the year for the euro

The Euro had a poor start to 2015, moving to six-year lows against sterling on Friday. The fresh lows of Friday were due to continued uncertainty in the Eurozone. With the Greek election at the end of January, this could bring in an anti-Eurozone government, which will be forced to negotiate a new debt package as the country continues to deal with amount of debt on the shoulders of the Greek economy. The euro quickly recovered throughout the day, however, moving a cent back in the single currency’s favour. This gain was due to the European Central Bank’s well-received meeting regarding the quantitative easing program, aimed at kick-starting the Eurozone economy.

Posted October 31st, 2014 by Charles Purdy

Euro suffers as data broadly disappointing

It was a relatively quiet start to the week for the Eurozone, with the majority of data out Thursday and today. Thursday saw weaker-than-expected Inflation figures for both Spain and Germany. The only positives for the week were Spanish growth figures coming out as expected, and the fall in German unemployment – which may lead to a positive outlook for Eurozone unemployment data out today. Germany, the Eurozone’s powerhouse, has been under the spotlight recently with less than impressive figures over the past few weeks, as well as talk that they may need to lower their tax revenue forecast due to weakening economic conditions.

Posted June 16th, 2010 by Charles Purdy

EUR/GBP Rate & Comments for 16th June 2010 EUR/GBP – 1.203 Sterling had a mixed day yesterday, falling after CPI inflation data came in slightly under what had been expected. Markets were anticipating an annual rate of inflation of 3.5% and when the data showed 3.4%, investors sold the pound. This saw sterling fall to  Continue Reading…

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