The Euro has strengthened against the Pound and rallied against many of its most traded peers on speculation that the steep declines recorded last week were too excessive.
On a day where there were very few data releases and trade was limited due to national holidays in France and the USA, the Euro managed to recover some of its value after last week’s heavy losses. The currency suffered a sharp decline after the European Union chose to cut its growth forecasts for the European Economy and as the European Central Bank surprised the markets by cutting interest rates to a new record low of 0.25%.
“Despite the release of the US jobs data on Friday, and despite the ECB rate cut, the technical factors make it seem like the Euro should go higher first. Basically what we’re telling our clients is don’t chase the Euro lower, look for a bounce to sell into,” said a New York based currency strategist in an interview with Bloomberg news.
The single currency was also supported by a decline in the value of several emerging market currencies in Asia due to the devastating Typhoon that hit the Philippines over the weekend. Other countries in the region such as Vietnam and China are also being impacted by the biggest storm to ever make landfall.
In Greece, Prime Minister Antonis Samaras survived a vote of no confidence. The Greek parliament voted in favour of Samaras who is in talks with the nation’s creditors. The outcome of the vote was favourable to the Euro as it eased some nerves.
Portugal saw its trade balance narrow slightly in September but the news had little impact on the Euro despite the figure coming in below economist forecasts.
Sterling could recover some ground on Tuesday due to the release of a number of UK specific data releases the most important of which will be the Consumer Price Index for October.
Important Data releases for the Euro –
Tuesday 12th November – German inflation rate
Wednesday 13th November – Eurozone Industrial Production
Thursday 14th November – German/France/Austria/Italy/Portugal GDP rates
Eurozone GDP
Greece unemployment rate
Friday 15th November – Eurozone inflation rate
Euro (EUR) Exchange Rates
As of 15:00 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3400
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8386
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4320
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6252
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4048
The Euro/ Japanese Yen Rate Exchange Rate is currently in the region of: 133.0364
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2328
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.1923
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7461
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6982
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6153
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.7119
Swiss Franc/Euro Exchange Rate is currently in the region of: 0.8110
