The Euro has weakened against the US Dollar for a fifth day after European Central Bank President Mario Draghi said that the Eurozone economy still requires a stimulating monetary policy if it is to see growth.
Draghi defended the ECB’s bond buying programme saying that it is more important than ever whilst the market suffers from its latest bouts of volatility.
He said in his speech in Berlin that the offer made last summer to buy bonds in countries struggling with high borrowing costs “is even more essential now that we see potential changes in the monetary policy stance, with associated uncertainty, in other jurisdictions of the global economy.”
Adding to the Euro’s declines against the US currency was the release of data which showed that factory orders for durable goods in the USA beat economist forecasts in May.
According to the Commerce Department, orders increased by 3.6% as demand for goods ranging from machinery to aircraft rose. Economists had been expecting orders to rise by 3% after the previous month’s strong figure of 3.5%.
The data throws added weight behind the Federal Reserve’s decision to taper its monetary easing policy as it is the latest indication that factory activity in the US is improving. Growing demand for cars and trucks are countering weakness in the nations export markets.
“This is the missing piece or an upswing in economic activity, Business capital investment activity is off to a strong showing. If businesses start investing, they’ll add to their workforce” said Millan Mulraine from TD securities USA LLC in New York City.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3103
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8484
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4136
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6912
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7614
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1752
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7060
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5922
(Correct as of 14:40pm GMT)