As the Greek negotiations with the Troika continue it appears that Portugal may be inching closer to achieving political resolution following the shock resignations which rocked the Eurozone earlier this week.
Yesterday evening Portugal’s political leaders entered intense discussions, and according to Prime Minister Pedro Passos Coelho a ‘formula’ for keeping the government united has been found.
Although details surrounding this ‘formula’ are sketchy, suspicions are rife that Paulo Portas, the former leader of the junior coalition party, might return to his post and take a more proactive stance in policy formation.
The concerning political situation in Portugal, combined with yesterday’s dovish statement from the European Central Bank, has piled pressure on the Euro and the common currency has posted widespread declines.
Although the Euro was able to strengthen against a broadly softening Pound, the currency dropped below 1.28 against the US Dollar ahead of the publication of today’s influential US non-farm payrolls data.
Sterling plummeted against its peers yesterday in response to an unexpectedly dovish policy statement from the Bank of England.
Although today’s German factory orders figures (for which economists are forecasting a gain of 0.1 per cent) will be of interest, the main catalysts for Euro movement in the hours ahead will be news from Greece and Portugal.
If the US non-farm payrolls data meets expectations and the US unemployment rate declines to 7.5 as forecast a ‘Greenback’ rally is likely and the Euro could fall further against its American peer.
Euro (EUR) Exchange Rates
As of 08:55
The Euro/US Dollar Exchange Rate is currently in the region of: 1.2886 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8584 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4097 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6497 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3573 >