The Euro began the week trading against the British Pound in the region of 0.8565
Today the Euro is trading against the British Pound in the region of 0.8436
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 25/04/13
Over the weekend the Euro benefited from the news that an Italian President had been elected. With Giorgio Napolitano instated the likelihood of Italy resolving weeks of political uncertainty increased, allowing the Euro to climb against the US Dollar and advance to a 39-month high against the Japanese Yen.
However, after PMI data for the Eurozone revealed that manufacturing and services output across the whole 17-nation currency bloc contracted for the 15th consecutive month the Euro fell below 1.30 against the US Dollar.
The disappointing economic news for the Eurozone, when combined with another piece of less-than-impressive Chinese data, dimmed the global economic outlook, causing higher-risk currencies like the Euro to fall.
The common currency continued to weaken against the US Dollar on Wednesday as two German economic sentiment surveys declined by more than expected.
But the Euro recouped losses after newly elected Italian President Giorgio Napolitano selected Enrico Letta to be the next Prime Minister. Letta accepted the role and began consulting the various Italian political parties in hopes that a new coalition government might be formed swiftly.
The belief that weeks of uncertainty will now come to an end pushed the Euro back above 1.30 against the US Dollar – but it wasn’t to last.
On Thursday the Euro tumbled against the Pound after UK first quarter GDP growth was shown to be modestly stronger than anticipated. The Euro also lost ground against the US Dollar as unemployment in Spain, the Eurozone’s third largest economy, swelled to new record highs.
Speculation that next week’s European Central Bank rate announcement will result in a rate cut caused the Euro to fall against both the Yen and British Pound as the week came to a close, although the presentation of Spain’s medium term fiscal plan and US GDP figures (due for release at 13:30 GMT) are likely to cause more volatility in the market in the hours ahead.
What to look out for next week:
In the week ahead the most influential pieces of economic news for the Euro include Monday’s Business Climate and Consumer Confidence figures for the Eurozone, Tuesday’s German Consumer Confidence Survey and German/Eurozone Unemployment Rate, Thursday’s final German manufacturing PMI and European Central Bank rate decision.
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 0.8436
The Euro is trading against the US Dollar in the region of 1.3017
The Euro is trading against the Australian Dollar in the region of 1.2667
The Pound is trading against the Euro in the region of 1.1852
The US Dollar is trading against the Euro in the region of 0.7683
The Australian Dollar is trading against the Euro in the region of 0.7891
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 11.10 am GMT on the 25/04/13