In a week of yo-yoing activity for the Euro, the common currency turned from bullish to bearish against the Pound as the British asset was lifted by stronger-than-anticipated UK employment figures.
Further EUR/GBP declines occurred as the Bank of England brought forward its estimate for the unemployment rate falling to 7 per cent.
An unexpectedly strong decline in Eurozone industrial production also wore on the common currency during the European session, while hints from a European Central Bank official regarding the possible implementation of negative rates and asset purchases inspired further fluctuations.
Meanwhile, the Euro edged lower against the US Dollar as the safe-haven asset derived support from the US monthly budget statement.
The Euro is currently trading against the US Dollar in the region of 1.3470
However, the common currency went on to erase the declines against the ‘Greenback’ as investors speculated on the likelihood of the nominee for the position of Chairman of the Federal Reserve tapering stimulus.
Janet Yellen is preparing to take over the top position once current Chairman Ben Bernanke steps down, and as a supporter of quantitative easing she is unlikely to support easing being trimmed.
But Yellen doesn’t have the backing of all of her fellow policy makers.
Recently Mike Crapo, Idaho Senator, commented; ‘I still have concerns, which were the concerns behind my original vote on her original nomination, about her support of the quantitative easing and the entire direction the bank has been going for the last few years.’ Crapo’s certainly isn’t the only dissenting voice.
The possibility of the Federal Reserve refraining from tapering easing in the aftermath of Yellen’s announcement saw the ‘Greenback’ post its most significant decline in three weeks.
While this morning’s GDP reports showed that French growth slowed more than expected while German expansion met forecasts, growth reports for the Eurozone and Italy are still to come and are likely to cause additional movement.
Euro (EUR) Exchange Rates
As of 07:05 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3470 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8395 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4404 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6262 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4101 <