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Euro to US Dollar (EUR/USD) exchange Rate – Euro weaker as Ukraine tensions boost Dollar demand

Euro Exchange Rates

Tensions in the Ukraine saw investors increase their demand for the safe haven US Dollar on Thursday weakening the Euro despite the release of fairly positive data for the Eurozone.

The safe haven US Dollar and Japanese Yen both strengthened against the single currency after Russian President Vldimir Putin gave the order to put around 150,000 Russian troops on alert as the situation in the Ukraine intensifies. Today saw gunmen seize control of a number of buildings in the pro-Russian region of Crimea and the Ukrainian interim President said that any movement of troops from the Russian naval base at Sevastopol would be seen as an act of aggression. With the European Union heavily involved in the situation investors saw the rising tensions as negative for the Euro.

Meanwhile there was an abundance of Eurozone economic data released this morning.

Any gains for the currency were muted after a report showed that lending to households and business in the Eurozone fell again last month and money supply growth remained subdued. The data added pressure to the European Central Bank to take more action at next week’s policy meeting to try and support the Euro economy.

“Weak money supply growth is not only condemning the Euro zone to a stagnant recovery, but it is raising the odds that the single-currency area could easily slip back into recession again. The ECB still needs to think outside the box to get the Eurozone motoring into the fast lane. A change of heart on quantitative still lies head,” said David Brown at New View Economics.

A report showed that unemployment in Germany fell for a third consecutive month in February and the number of jobless citizens’ fell more than economist forecast; the overall jobless remained at 6.8%. The data had little impact on the Euro.

Business confidence edged higher in Italy and Greece but consumer confidence fell in France.

The Euro did find some support from a report which showed that Eurozone economic confidence rose to 101.2, a figure higher than economist expectations for 100.7.

[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3651 ,
Euro,,British Pound,0.8207 ,
Euro,,Australian Dollar,1.5293 ,
Euro,,Canadian Dollar,1.5190 ,

As of 10:30 am GMT