Exactly one year ago today European Central Bank President Mario Draghi vowed that the central bank would do ‘whatever it takes’ to save the Eurozone from total economic collapse.
So what’s changed 365 days later?
Well the Eurozone’s had a bit of a mixed year. ‘Grexit’ fears may have receded but improvements in economic data have been somewhat counteracted by political concerns in Portugal and Italy, social unrest in several key Eurozone nations and the ongoing global economic slowdown.
However, Draghi’s assertion went a long way to restoring calm to markets and bolstering the Euro.
Furthermore, the pledge prompted the formation of the ECB’s controversial Outright Monetary Transactions (OMT) programme, an as yet untried scheme designed to save floundering nations.
In the twelve months since Draghi stated: ‘Within our mandate, the ECB is ready to do whatever it takes to preserve the Euro. And believe me, it will be enough’ the common currency has risen from around 78 pence per Euro to 86 pence per Euro.
The Euro/Pound pairing is currently trading in the region of 0.8633
And there was some good news for the 17-nation currency bloc this morning.
According to data compiled by statistics office INSEE, French consumer confidence climbed to 82, a three month high and significantly better than the 79 estimated.
Morale may be below the traditional average, but opinion of the general economic situation in the coming months has improved ‘noticeably’.
However, separate data showed that Germany’s import price index declined by 0.8 per cent month-on-month and was down 2.2 per cent on the year. Economists had forecast a fall of 0.3 per cent month-on-month and 1.6 per cent year-on-year.
An absence of additional economic news for the Eurozone may restrict further currency movement in the hours ahead.
Euro (EUR) Exchange Rates
As of 09:00
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3284 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8633 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4342 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6469 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3641 <