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Posted January 26th, 2015 by Charles Purdy

Euro in for a tough week

It was another volatile and tough day for the euro on Friday, which saw the single currency continue its slide against the majority of its peers. The euro slid to fresh seven-year highs against sterling and also against the US dollar with lows not seen since September 2003. Data released on Friday morning, in terms of both manufacturing and services Purchasing Managers’ Indices (PMIs) for Germany, France and the Eurozone, was fairly negative on the whole, with only the French manufacturing PMI coming out better than expected. All the figures showed either contraction in their industries or very weak expansion.

And the bad news keeps on coming for the euro with Sundays Greek election resulting in success for the anti-austerity parties. Will it be a case of “light the blue touch paper and stand back” or will common sense prevail. I am sure there will be some tough negotiations and the Greeks certainly need some light at the end of the tunnel.

In addition there will be a lot of Eurozone data being released. Today we will have the German Business Climate (an indicator of economic health) as well as the start of the Eurogroup meetings, which will discuss the current Eurozone economy and those effecting it, which also moves on to Tuesday with the ECOFIN meetings (this is only attended by Finance Ministers from EU member states). We could see movements in the market from this as various reports are given throughout Monday and Tuesday. German retail sales are also expected from Wednesday.

German consumer inflation is expected Thursday. With the previous figure being 0%, we could see an expected fall that will run parallel with the EU Inflation, as well as German unemployment. Friday seems to be one of the busiest days on paper, as we are expected to see French consumer spending data along with inflation figures for Spain and the Eurozone. Inflation for the Eurozone is expected to continue falling for the short-term as reported by European Central Bank (ECB) President Mario Draghi on Thursday, until the ECB’s quantitative easing measures start stimulating the economy. Unemployment data is also out for the Eurozone, which has been static since August 2014.

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 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.

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.

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.

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