The Euro began the week trading against the British Pound in the region of 0.8533
Today the Euro is trading against the British Pound in the region of 0.8500
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 07/06/13
In a particularly turbulent week for the currency market the Euro has made significant advances against several of its most traded currency peers.
On Monday data showing that the rate of contraction in the Eurozone’s manufacturing sector eased in May allowed the Euro to push above 1.3019 against the US Dollar, although it continued to trade in the region of 0.8533 against a broadly strengthening Pound.
Gains were extended on Tuesday as Spanish employment data was more positive than expected while other economic indicators for the Eurozone met expectations.
Although the Euro dipped to 0.8502 against the Pound on Wednesday, following the release of disappointing retail sales and services data for the Eurozone, the common currency experienced a rebound on Thursday.
The Euro posted significant gains against its rivals after the European Central Bank left interest rates and economic policy unaltered.
ECB President Mario Draghi also issued a more optimistic than expected statement regarding the Eurozone’s economic recovery: ‘Recent developments in economic sentiment data have shown some improvements [...] Euro-area economic activity should stabilise and recover over the course of the year albeit at a subdued pace. We will monitor very closely all incoming developments and we stand ready to act.’
In the hours following the policy announcement the Euro strengthened to multi-week highs against the US Dollar. The currency also extended gains against the Australian Dollar and New Zealand Dollar.
By Friday the Euro was trading in the region of 1.3230 against the US Dollar after hitting a high of 1.3267 and was slightly lower against the Pound.
Although German data showed that industrial production in the Eurozone’s largest economy expanded by 1 per cent in April rather than contracting by 0.7 per cent as economists expected, additional Euro movement was limited ahead of the release of the weeks major piece of data – US non-farm payrolls report
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 Investor Confidence Index, Wednesday’s German Consumer Price Index and Eurozone Industrial Productions figures, Thursday’s publication of minutes from the ECB’s latest policy meeting and Friday’s Eurozone CPI.
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Current Euro Exchange rates:
The Euro is trading against the Pound in the region of 0.8501
The Euro is trading against the US Dollar in the region of 1.3231
The Euro is trading against the Australian Dollar in the region of 1.3939
The Pound is trading against the Euro in the region of 1.1761
The US Dollar is trading against the Euro in the region of 0.7554
The Australian Dollar is trading against the Euro in the region of 0.7172
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 07/06/13