The Euro began the week trading against the British Pound in the region of 0.8430
Today the Euro is trading against the British Pound in the region of 0.8443
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 03/05/13
The Euro began the week on a low (despite Italy achieving political resolution over the weekend) having lost ground against the British Pound following last week’s stronger than expected UK GDP figures.
The common currency continued to dip against the US Dollar and British Pound as the week progressed and the Eurozone’s economic outlook received another battering from disappointing economic data.
While one report detailed an unexpectedly large decline in confidence in the Eurozone, German unemployment was shown to have increased for a second consecutive month while Eurozone unemployment hit a record high of 12.1 per cent in April. Greece, Spain and Portugal recorded the highest levels of joblessness in the currency bloc.
However, as the week progressed the Euro strengthened against its rivals, rising close to a two-month high against the US Dollar despite the expectation that the European Central Bank would implement a rate cut when it met on Thursday.
Although the prospect of a rate cut would traditionally drive a currency down, the Euro continued to gain after the ECB met expectations and slashed the key benchmark rate to a record low of 0.5 per cent.
However, in the hours following the decision the Euro tumbled on the prospect of the ECB cutting the deposit rate below zero in its attempt to boost growth in the struggling Eurozone.
By Friday ECB officials had calmed fears and the Eurozone was able to recover much of its losses despite the European Union cutting its growth forecast for the 17-nation currency bloc to contraction of 0.4 per cent in 2013.
The Euro was able to gain on the US Dollar as the American currency declined before the release of employment data for the world’s largest economy. Although economists are predicting the non-farm payrolls report to show improvement some fear that it may disappoint as it did the previous month.
What to look out for next week:
In the week ahead the most influential pieces of economic news for the Euro include Monday’s PMI, Investor Confidence and Retail Sales figures for the Eurozone, Tuesday’s German Factory Orders data, Wednesday’s German Industrial Production Statistics, Thursday’s publication of the ECB’s monthly report and Friday’s German Trade Balance.
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Current Euro Exchange rates:
The Euro is trading against the Pound in the region of 0.8446
The Euro is trading against the US Dollar in the region of 1.3120
The Euro is trading against the Australian Dollar in the region of 1.2802
The Pound is trading against the Euro in the region of 1.1842
The US Dollar is trading against the Euro in the region of 0.7621
The Australian Dollar is trading against the Euro in the region of 0.7815
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 03/05/13