The Euro began the week strengthened against the US Dollar following comments made by Goldman Sachs chief executive Lloyd Blankfein who said that he was confident the Euro would survive despite the debt crisis. He rejected the view of billionaire investor George Soros that Germany should exit the Euro and didn’t accept the idea of joint liability for sovereign debt through so-called Euro bonds.
Prior to Blankfein’s comments the Euro was close to a six-week low against the ‘Greenback’ due to speculation that the Federal Reserve will slow its asset purchasing programme.
Mid-week the single currency strengthened to a four-week high against the Pound and continued to climb against the US Dollar. Expectations that the Federal Reserve would maintain its current level of quantitative easing in spite of recent positive US data caused the ‘Greenback’ to soften against the majority if its peers. The Euro was also little affected by Vodafone’s declaration that ‘severe macroeconomic weakness’ across Southern Europe (particularly a slump in demand in Spain, Italy, Greece and Portugal) has been ‘very challenging’ and hit the company hard.
On Friday the Euro strengthened against the US Dollar after the latest German Purchasing Managers Index reported better-than-expected manufacturing activity in the Eurozone’s biggest economy. Germany’s PMI increased to 49.0 in May after coming in at 48.1 in April. A figure above fifty means growth. The French flash manufacturing Purchasing Managers’ Index (PMI) advanced to 44.5 in May, from 44.4 recorded in April, while a reading of 44.7 was expected.
The single currency also found support against a basket of its most traded peers as data showed that the Eurozone’s largest economy, Germany grew in the last quarter. According to Statistsches Bundesamt Deutschland the nation’s Gross Domestic Product inched upwards by 0.1%. The data has given investors optimism that Germany will post stronger growth in the second quarter of 2013.
Euro Exchange Rates (as of 15:45 pm GMT)
The Euro is trading against the Pound in the region of 0.8551
The Euro is trading against the US Dollar in the region of 1.2938
The Euro is trading against the Australian Dollar in the region of 1.3379
The Euro is trading against the New Zealand Dollar in the region of 1.5999
The Euro is trading against the Canadian Dollar in the region of 1.3379
The Pound is trading against the Euro in the region of 1.1687
The US Dollar is trading against the Euro in the region of 0.7725
The Australian Dollar is trading against the Euro in the region of 0.7469