The Euro traded at its highest level in eight months against the US Dollar on Wednesday afternoon after Italian Prime Minister Enrico Letta won a key confidence vote and as ECB President Mario Draghi announced that no new measures will be needed to help the Eurozone recovery.
The single currency strengthened by its biggest level in two-weeks after the Italian Prime Minister survived a vote of confidence in parliament. In a humiliating U-turn Silvio Berlusconi was forced to throw his support behind the government after a number of his allies turned against him. In a tale similar to that of Julius Caesar and Brutus, Berlusconi was knifed in the back by his deputy Angelino Alfano. The positive outcome eased concerns over political unrest in Europe’s third largest economy, which supported demand for the Euro.
As the afternoon progressed the ECB published its interest rate decision for the month. It met economist expectations of maintaining rates at the record low level of 0.5%. During his monthly press conference Mario Draghi revealed that he was refraining from introducing any new measures in order to boost the region’s economic recovery.
“The fact that he isn’t taking action today is propelling Euro-Dollar higher, If Draghi was to play a key policy card today it could be lost against the tide of dollar weakness.” said Jane Foley, senior currency strategist at Rabobank International.
The US Dollar remained under heavy selling pressure as the federal government shutdown extended into a second day with no end in sight and as data showed that the number of new jobs created in September came in lower than expected.
Euro (EUR) Exchange Rates
As of 15:45 pm
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3584
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8367
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4516
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6478
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4053