The Euro fell to an almost month low against the US Dollar overnight as concerns about the political stability of Portugal took a toll on the market. The common currency also declined against several of its other main peers, including the Yen and British Pound.
In response to the currency’s movement chief economist Hans Kunnen commented: ‘We’re not particularly upbeat about the Euro. The re-emergence of uncertainty following the resignation of the Portuguese Finance Minister becomes a central theme for us and there is a lack of perceived progress in the reform process in Europe. Any comments from the ECB would more likely weigh to the downside.’
Although Portuguese Prime Minister Pedro Passos Coelho asserted that he will do everything he can to keep his government together following the resignation of his Finance Minister Vitor Gasper and Foreign Affairs Minister Paulo Portas, speculation abounds that two more high profile members of the Portuguese government may be about to step down.
According to local media, both Agriculture Minister Assuncao Cristas and Social Security Minister Pedro Mota Soares (both members of the junior coalition partner the Conservative Popular Party) are preparing to resign their posts.
While additional news regarding this issue is likely to inspire Euro fluctuations in the hours ahead investors will also be looking to today’s European Central Bank rate decision. The economic statement delivered by ECB President Mario Draghi will be of particular interest given his recent comments regarding fiscal policy remaining ‘accommodative’.
Movement in the EUR/GBP pairing may also occur today in response to the Bank of England’s rate decision and Mark Carney’s first policy statement as BOE Governor.
Euro (EUR) Exchange Rates
As of 08:50
The Euro/US Dollar Exchange Rate is currently in the region of: 1.2986 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8518 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4277 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6701 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3651 <