The Euro had a fairly positive week in terms of gains and signs that a sense of optimism is returning to the struggling economic region.
At the start of the week the single currency strengthened against the majority of its most traded peers following the publication of data which showed that manufacturing in the Eurozone and Germany in particular came in strongly. The regions service sector softened but that was widely ignored by investors.
Tuesday saw the single currency extend its gains against the US Dollar and Pound as a ZEW economic sentiment survey showed that confidence in the German economy leapt to a seven-year high. The figure was significantly better than that forecast by economists. A ZEW economist observed that the results indicate that the recession in the Eurozone is bottoming out and that Germany could post better-than-forecast economic growth next year.
Despite the positive news the Euro softened against the Pound and US Dollar due to the publication of strong data in the UK and as the US Federal Reserve announced that it would begin tapering its monetary easing programme in the New Year. The currency was able to remain range bound as talks between European Finance ministers discussed a banking union which appears closer to becoming a reality.
As the week drew to a close the Euro was weakened after credit ratings agency Standard & Poor’s cut the EU’s credit rating. Ongoing record high unemployment and the agonisingly slow economic recovery were just some of the reasons for the cut.
The week ahead is likely to be very quiet in terms of volatility and movement for the Euro as most major economic centres are closed for the Christmas holiday season.
Key Euro data for the week ahead:
Due to the Christmas holidays there are no major Euro data releases this week.
Euro (EUR) Exchange Rates
As of 10:40 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3681
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8370
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5323
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6693
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4537
The Euro/ Japanese Yen Rate Exchange Rate is currently in the region of: 142.2418
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2258
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.1944
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7310
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6527
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5989
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.6867
Swiss Franc/Euro Exchange Rate is currently in the region of: 0.8180
