As Friday progresses the Euro is trading against the Pound and US Dollar in the same region as it was at the beginning of the week, although various factors have triggered movement in the common currency over the course of the week.
Firstly, disappointing Chinese GDP figures caused commodities and higher-risk currencies to tumble on Monday. Fears that the global slowdown is taking a worsening toll on the world’s second largest economy turned the Euro bearish and the common currency declined against the majority of its most traded rivals.
But as commodities recovered and risk appetite returned to the market the Euro was able to rebound to a 7-week high against the US Dollar, despite less-than-impressive German investor confidence figures and falling construction output in the Eurozone.
The Euro recorded additional gains after Germany gave the Cypriot bailout package its seal of approval.
However, on Friday concerns that the ongoing political issues in Italy could grow into a fresh crisis kept the Euro trading below 1.31 US Dollars. The common currency was also trading moderately lower against the Pound after the declining odds of the Bank of England introducing additional stimulus when Mark Carney becomes Governor strengthened Sterling.
The EUR/GBP pairing is likely to experience significant movement next week following the release of first quarter GDP for the UK. Economists are expecting the data to show that the UK narrowly avoided entering a triple-dip recession by posting growth of 0.1 per cent. If the result fails to live up to this estimate the Pound could plummet and the Euro could advance.
Euro Exchange Rates (as of 11:38 pm GMT)
The Euro is trading against the Pound in the region of 0.8532
The Euro is trading against the US Dollar in the region of 1.3093
The Euro is trading against the Australian Dollar in the region of 1.2651
The Euro is trading against the New Zealand Dollar in the region of 1.5450
The Euro is trading against the Canadian Dollar in the region of 1.3394