It is expected that the minutes from the European Central Bank’s latest policy meeting will reiterate the cautious outlook offered by President Mario Draghi in the statement issued last week. However, the Eurozone’s economic recovery might be fragile, but according to economists it’s here to stay.
The Euro/US Dollar pairing is currently trading in the region of 1.3300
In a poll of economists conducted by Reuters News Agency almost all of those surveyed expressed confidence in the currency bloc’s continuing recovery, with only one expecting the Eurozone to lapse back into recession by the end of 2014.
As Aurel BGC economist Jean-Louis Mourier stated; ‘I’m very confident that it will last, but not confident regarding an acceleration of economic activity.’
The majority of participants felt that the Eurozone will struggle to build momentum in the months and years to come, with growth predictions ranging from 0.2 per cent to 0.4 per cent for early 2015.
It also seemed that the economists were in agreement with the European Central Bank’s plan to hold interest rates at record lows for ‘as long as necessary’.
Prior to the publication of the ECB minutes the Euro was trading close to a month-high against the US Dollar as the North American asset declined in response to the falling odds of the Federal Reserve opting to taper stimulus when it meets next week.
The EUR/USD pairing could extend advances in the aftermath of the Federal Open Market Committee meeting on the 18th if the Fed acts as currency strategist Joseph Capurso believes they will. Capurso stated; ‘The Fed will start tapering next week, but I think they might also be a bit dovish. That might see the US Dollar weaken again in a knee-jerk reaction.’
Data to watch out for today includes Eurozone industrial production figures and US initial jobless claims.
Bank of England Governor Mark Carney’s testimony to Parliament will also be of interest to the EUR/GBP pairing.
Euro (EUR) Exchange Rates
As of 09:00
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3300 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8417 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4394 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6348 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3717 <