The Euro began the week trading against the British Pound in the region of 0.8524
Today the Euro is trading against the British Pound in the region of 0.8530
Here we take a brief look at what's been happening with the Euro this week, and what could cause the Euro exchange rate to rise or fall in the week ahead.
Round-up for week ending 19/04/13
As the week began riskier currencies like the Euro lost ground against several of their main rivals following the publication of disappointing GDP figures for China. Increasing concerns regarding the stability of the world’s second largest economy boosted the US Dollar and caused commodities (most notably gold) to fall.
The common currency dipped further after a report showed that German investor confidence fell considerably in April. Separate data revealed that inflation across the Eurozone eased in March.
However, by mid-week the Euro had recouped much of its losses and was able to achieve a 7-week high against the US Dollar after commodity prices began to recover and the appeal of higher-risk assets increased. The common currency continued to trade in the region of 1.3183 US dollars despite construction output in the Eurozone slipping for a fourth consecutive month.
The Euro was able to strengthen further after Germany approved Cyprus bailout package and German Finance Minister Wolfgang Schäuble spoke positively of the progress the Eurozone has made towards economic recovery.
That being said, some industry experts fear that with the political situation in Italy appearing ever more uncertain a new risk to the Eurozone is on the horizon.
Last month the Italian elections for Prime Minister ended inconclusively, resulting in a hung parliament. Now the Presidential elections are becoming farcical. After the first round of voting no candidate was selected, with some MP’s handing in blank voting slips or submitting the names of football stars. It is largely expected that the MP’s will not vote seriously until the fourth and final round of voting when the margin for victory is less.
Once a President is instated it is expected that he will call for a re-election to clear up the Prime Minister confusion.
As the Eurozone has only just started to recover from the Cyprus crisis many are hoping that this issue is swiftly resolved.
After a week of fluctuations the Euro ends the week trading in the same region as when it began.
What to look out for next week:
In the week ahead the most influential pieces of economic news for the Euro include Monday’s Eurozone Consumer Confidence Index, Tuesday’s German Manufacturing PMI and Wednesday’s German IFO Business Climate/Expectations surveys.
If you have any questions regarding the Euro, or currency in general, please leave me a comment and I’ll get back to you as soon as I can!
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Current Euro Exchange rates:
The Euro is trading against the Pound in the region of 0.8530
The Euro is trading against the US Dollar in the region of 1.3093
The Euro is trading against the Australian Dollar in the region of 1.2651
The Pound is trading against the Euro in the region of 1.1724
The US Dollar is trading against the Euro in the region of 0.7639
The Australian Dollar is trading against the Euro in the region of 0.7904
These exchange rates are provided by TorFX, a leading provider of foreign exchange. TorFX offers the best possible exchange rates for all your currency needs.
These exchange rates were correct as of 11.25 am GMT on the 19/04/13