In a reversal of fortunes, the Euro rallied against several of its major currency rivals yesterday and ended European trading at a five-week high against the ‘Greenback’.
The common currency also enjoyed its most significant advance against the Pound for nine months, advancing 0.9 per cent against its bearish British rival in the immediate aftermath of the Bank of England’s policy meeting.
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3660 <
Although the European Central Bank held rates at record lows the fact that President Mario Draghi avoided mentioning introducing negative deposit rates lent the Euro considerable support.
While the Euro jumped by 0.5 per cent on the US Dollar gains were a little limited as the North American rallied in response to positive initial jobless claims and GDP data. With the US filing fewer applications for unemployment benefit then forecast in the week ending November 29th and the US economy expanding by more than expected in the third quarter the odds of the Federal Reserve tapering stimulus in December increased and the ‘Buck’ climbed.
However, strategist Kit Juckes commented; There’s nothing that’s happened today to give the impression euro-dollar is going to go down. All that can happen is a really big payroll number tomorrow or something like that from the states. That’s all that could change it at all.”
The highly influential US non-farm payrolls report is scheduled for publication at 13:30 GMT.
If the US economy is shown to have added more than the 183,000 positions predicted the EUR/USD pairing may trim its advance before the weekend.
However, German factory orders could also impact the Euro today.
Economists have forecast that orders declined by 0.1 per cent in October, month-on-month, after gaining by 3.3 per cent in September.
Euro (EUR) Exchange Rates
As of 07:10 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3660 <
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: 1.5092 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6677 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4556 <
