As last week drew to a close the Euro recovered losses against the ‘Greenback’ as a series of disappointing data releases for the US pointed to growth slowing in the world’s largest economy.
The EUR/USD pairing was also boosted by comments issued by Janet Yellen, the candidate for the position of Chairman of the Federal Reserve. Although Yellen did acknowledge that the central bank’s accommodative easing policy can’t be continued indefinitely, she made it clear that she believes that the nation continues to need serious fiscal support. In light of Yellen’s remark’s the odds of any tapering occurring before next spring have fallen considerably.
According to industry expert Michael Woolfolk; ‘As risk appetite increases, the Dollar and Yen have sold off. We believe that Yellen’s Senate confirmation hearing slammed the door shut on a December taper.’
However, with Eurozone data confirming that growth in the 17-nation currency bloc slowed in the third quarter, Euro gains were somewhat limited.
The Euro put in a patchy performance against the Pound and extended a five-day decline before the end of Friday’s European session after Bank of England policy maker Martin Weale asserted that the UK’s economic recovery could continue to strengthen at a faster-than-anticipated rate.
Further EUR/GBP declines could be seen this week if currency strategist Ulrich Leuchtmann’s predictions prove accurate. Leuchtmann recently stated; ‘We have seen such a strong move in the Pound this week. The strength is justified by the improvement in the economic performance and I think over the medium term, it can continue.’
The Euro is currently trading against the US Dollar in the region of 1.3503
Today some Euro movement may follow the release of Eurozone trade balance data.
Other Eurozone data to watch out for this week includes the German and Eurozone ZEW economic sentiment surveys, German producer price figures, German/Eurozone services and manufacturing PMI, Eurozone consumer confidence and final German GDP.
Of course, US data will also have an impact on the EUR/USD pairing. US retail sales and inflation data will be of particular interest, as will the publication of minutes from the latest Federal Open Market Committee policy meeting.
Euro (EUR) Exchange Rates
As of 07:05 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3503 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8366 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4356 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6179 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4078 <