At the close of last week the US Dollar surged against several of its peers as stronger than anticipated US non-farm payrolls increased the likelihood of the Federal Reserve tapering stimulus in December.
However, the US Dollar later pared gains and the Euro remained buoyed by the European Central Bank’s decision to refrain from introducing additional stimulus at its recent policy meeting.
Consequently the common currency enjoyed a fourth consecutive five-day gain against the ‘Greenback’.
Currency strategist Marc Chandler was quoted as saying; ‘Even though [ECB President Mario] Draghi seemed to me to be dovish, he didn’t appear to be in a hurry to provide more accommodation. The markets believe what the Federal Reserve is saying, tapering isn’t tightening.’
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3702
As the European session opened the Euro continued to trade close to a five-week high against its North American peer.
Although some economists believe that the ECB will be driven to introducing a negative deposit rate next year if the Eurozone’s recovery continues to struggle.
The Euro was also supported by the news that the Greek budget for 2014 has been approved by Lawmakers.
Although the margin was narrow, with just 11 votes dividing those approving the budget and those against, the result bolstered the Euro.
According to Prime Minister Antonis Samaras; ‘We’re getting our fiscal economies in order and we’re fixing fundamental long-term imbalances in our economy. We’re not just winning the battle to reform, we’re winning the battle to become competitive and stand on our own feet.’
Today Euro movement is likely to occur in response to Eurozone investor confidence figures and German industrial production data.
As the week progresses the publication of minutes from the latest European Central Bank policy meeting will be the major Eurozone news to watch out for.
Euro (EUR) Exchange Rates
As of 07:05 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3702 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8382 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5079 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6542 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4589 <