The Euro may have recovered some ground against the US Dollar (USD) after the American currency was softened by a round of profit taking but against other peers, it tumbled to fresh multi month lows.
Against the Australian Dollar, the Euro declined to its lowest level since November as economists increased their bets that upcoming Euro centric economic data will widely disappoint. A series of poor data reports published earlier on Wednesday highlighted the weakness in the Eurozone’s top three economies of Germany, France and Italy.
The ‘Aussie’ strengthened as it benefitted from the weakness seen in the US Dollar. On Wednesday, the ‘Greenback’ was in retreat against most of its most traded peers as investors took profits ahead of major economic data releases on Thursday and Friday.
The EUR/AUD exchange rate is down by around 2% this month because of increasing expectations that the European Central Bank will introduce a quantitative easing programme at its next monetary policy meeting.
“The downtrend is fairly strong since we broke below A$1.4400 and I see another move lower of 50 to 70 ticks,” said a trader at a European bank in Singapore.
Against the Canadian Dollar the Euro weakened to a fresh 10-month low after the ‘Loonie’ received support from a major deal struck between the USA’s Burger King and Canada’s Tim Horton coffee chain for a fee of $12.5 billion.
The Canadian Dollar advanced due to foreign buyers using the currency to close the deal. The ‘Loonie’ was also finding support from expectations that Friday’s economic growth update would come in strongly.
Economists are expecting that GDP expanded by 0.2% in June, which translate into annualised growth of 2.6%. Investors will also be looking ahead to next Wednesday’s decision on interest rates.
Earlier in the morning, the Euro came under further pressure after Consumer Confidence in Germany and Italy declined and as Manufacturing Confidence in France fell to a 13-month low.
The negative data increased speculation that the ECB will introduce new quantitative easing measures at its next monetary policy meeting.
The Single currency is likely to weaken further on Thursday as the latest Business Confidence, Industrial Sentiment and German inflation data are all forecast to come in softer than the previous month.
The US Dollar meanwhile could regain ground if the latest Continuing Jobless Claims and second GDP growth estimate come in stronger than forecast.
Euro Exchange Rate News
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3194 ,
Euro,,British Pound,0.7986 ,
Euro,,Canadian Dollar,1.4482 ,
Euro,,Australian Dollar,1.4207 ,