At the start of the week the Euro was holding steady against the Pound and edged up against the US Dollar after the Portuguese government allayed investor fears over the nation’s political situation. The country’s President Anibal Cavaco Silva said that the government of embattled Prime Minister Pedro Passos Coelho will stay in office until 2015, dampening fears of a snap election.
Comments made by the Bank of Spain also supported the currency after it said that it expects the embattled nation’s economy to decline by just 0.1% in the second quarter of the year.
The slowdown in Spain’s decline buoyed sentiment as investors saw the news as another sign that the Eurozone is starting to head towards recovery. Adding to the optimism were comments made by French finance Minister Pierre Moscovici who said that the country’s recession is over.
Mid-week the Euro made gains against the majority of its peers as the single currency continues to receive strength from yesterday’s surprisingly positive PMI data. The Euro remained slightly higher against Sterling following the release of data showing signs of improvement in some of the Eurozone’s major economies. Unemployment in Spain fell for the first time since it entered recession and business morale in Germany made a surprise increase.
Adding to further signs of economic improvement was the latest data showing that manufacturing in Germany and the Eurozone as a whole unexpectedly returned to growth, while German services PMI expanded significantly more than forecast surging from 50.4 in June to 52.5 in July while manufacturing PMI came in at 50.3, above the 50 mark which separates growth from contraction.
On Friday the Euro remains slightly higher against Sterling following the release of data showing signs of improvement in some the Eurozone’s major economies.
Major events next week for the Euro
Sunday 28th July – German Retail sales
Tuesday 30th July – Eurozone consumer confidence data
Wednesday 31st July – Eurozone Unemployment rate
Thursday 1st August – Eurozone PMI data
Central Bank rate decision
Friday 2nd August – Eurozone Producer Price Index
Euro Exchange Rates
(As of 12:35 pm GMT)
The Euro is trading against the Pound in the region of 0.8627
The Euro is trading against the US Dollar in the region of 1.3290
The Euro is trading against the Australian Dollar in the region of 1.4317
The Euro is trading against the New Zealand Dollar in the region of 1.6437
The Euro is trading against the Canadian Dollar in the region of 1.3647
The Pound is trading against the Euro in the region of 1.1591
The US Dollar is trading against the Euro in the region of 0.7524
The Australian Dollar is trading against the Euro in the region of 0.6984