The Euro began the week trading against the British Pound in the region of 0.8567
Today the Euro is trading against the British Pound in the region of 0.8597
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 05/07/13
Just when the Eurozone started to look as though it was on an even keel, another wave came to rock the 17-nation currency bloc.
This time it was political concerns in Portugal which weakened confidence in the Eurozone’s economic recovery and caused the Euro to drop against its rivals.
Portugal has long been struggling to overcome recession, high unemployment and social unrest inspired by extensive austerity, and on the 15th July Portugal’s lenders will return to the nation to conduct its latest bailout review.
With so much at stake, losing one key figure in the Portuguese government would have been a hefty blow – losing two was a near catastrophe.
On Monday Portugal’s Finance Minister Vitor Gaspar, the Finance Minister and orchestrator of the nation’s fiscal policy measures, resigned his post.
Gaspar argued that he was leaving his position because of his failure to reach public deficit and debt targets, but also mentioned the growing tide of public resentment against his measures.
Although Secretary of State for Treasury Maria Luis Albuquerque was quickly named as Gaspar’s replacement, concerns for Portugal’s political stability were exacerbated as Paulo Portas (Foreign Affairs Minister and leader of the junior coalition partner) also stepped down. Portas reportedly left his post as a protest against current fiscal policy.
The Euro was significantly affected by the development and slid against the majority of its currency rivals.
On Thursday the common currency received an additional knock as the European Central Bank intimated in its policy statement that stimulus would remain accommodative for ‘as long as necessary.’
However, while the Euro declined notably against the US Dollar it was able to gain on a weaker British Pound. Sterling fell to multi-week lows against several of its counterparts after the Bank of England issued its own dovish policy statement.
Additional movement in the EUR/USD pairing is likely to occur before the weekend as a result of the publication of influential US employment data.
What to look out for next week:
In the week ahead the most influential pieces of economic news from the Eurozone include Monday’s Eurozone investor confidence index and German industrial production figures, Wednesday’s German consumer price index, Thursday’s publication of the European Central Bank’s monthly report and Friday’s industrial production data for the Eurozone.
Developments in Greece and Portugal will also be of interest and Euro movement could also result from US news.
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Current Euro Exchange rates:
The Euro is trading against the Pound in the region of 0.8597
The Euro is trading against the US Dollar in the region of 1.2878
The Euro is trading against the Australian Dollar in the region of 1.4057
The Pound is trading against the Euro in the region of 1.1635
The US Dollar is trading against the Euro in the region of 0.7769
The Australian Dollar is trading against the Euro in the region of 0.7113
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 11.15 am GMT on the 05/07/13