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Posted June 1st, 2016 by Charles Purdy

Positive Day Overall for Euro

It was a positive day overall for the euro yesterday as it strengthened against sterling and the US dollar. However, rather than this being a result of major strengthening in the single currency, it was largely because of weakness in the pound and greenback.

Economic data from the eurozone came out as anticipated, with the flash Consumer Price Index (CPI) figures moving up slightly from -0.2% to -0.1%. In addition, the release of the unemployment figures showed that they had remained unchanged at 10.2%. Although this had very little effect on the euro, it was important that the figure didn’t come in weaker than before as this could have caused some weakening of the euro.

Later today, we will have the release of the Manufacturing Purchasing Managers’ Index. It is due to be released at 9am and is expected to fall slightly to 51.5 from 51.7 the month before. However, any figure over 50.0 signifies growth – it’s more a case of gauging whether growth is slowing, improving, or staying as is. Indeed, any improvement on last month’s data could lead to some further strengthening. It is fair to say that the main focus of the week is on the all-important eurozone interest rate decision from the European Central Bank’s President Mario Draghi on Thursday.

If you want to get a handy newsletter in your inbox every Monday, Tuesday, Wednesday, Thursday and Friday, you can subscribe to our daily currency note and read through the archive. It is completely free to access and includes a summary of the previous day’s events and the economic calendar for the day ahead. Importantly, we consciously strive to present currency movements in context so you not only understand what is happening, you can appreciate what this means and how it could affect your business’s profit, margins and bottom line.

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Posted January 2nd, 2015 by Charles Purdy

The euro has a disappointing end to 2014

The euro finished off 2014 in largely disappointing fashion, seeing losses against a number of its major partners. The multi-nation currency dropped to the worst level in three months against sterling, nearing the two and a half year lows seen at the start of October.

The euro also continued its fall against the US dollar, extended to a further low, the lowest since July 2012. These movements continued to centre around political and economic uncertainty in Greece, with their snap elections due on 25th January causing the euro to weaken.

After yesterday’s New Year close, markets will reopen today with data releases from both Spain and Italy.

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.

Posted October 25th, 2013 by Charles Purdy

Euro has a good week

The euro put on a dominant display this week, making substantial gains against sterling and the US dollar. The euro – US dollar rate reached new highs for 2013 as we saw it rise above 1.38. Much of this strength can be attributed to the poor labour data emanating from the USA released on Tuesday, whilst the seventeen-nation currency also strengthened consistently against sterling throughout the week. Aside from mildly better than expected Producer Price Index data from Germany, there has been little hard data underpinning euro performance this week, yet it has continued to strengthen against major peers as investor confidence returns to the Eurozone.

Posted October 22nd, 2013 by Charles Purdy

Euro strong against the US dollar

As the dust settles following the narrow avoidance of a US default the euro appears to be enjoying some modest benefits from the fallout. Yesterday saw some small fluctuations against the US dollar whilst the rate remained just below 1.37. We are very close to the year-high seen in February and may indeed see new highs if this trend continues. Investor confidence in the US dollar took a knock following the prolonged shutdown and some investors seem to have seen the seventeen-nation currency as a viable alternative safe-haven currency as data from the Eurozone improves. In terms of short-term performance there is little data set to be released today or tomorrow that is likely to affect euro pairings, however traders may begin to speculate ahead of Thursday’s key releases.

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