As a pretty positive week for the Euro nears an end the common currency continues to trade in the region of a seven-month high against the US Dollar after surging in the wake of Wednesday’s Federal Open Market Committee announcement.
The Euro/US Dollar pairing is currently trading in the region of 1.3544
The Euro was also trading within touching distance of a four and a half year high against the Yen and largely retained gains secured against the Pound following the release of disappointing UK retail sales figures.
In response to the Euro’s newfound strength senior currency strategist Jane Foley commented: ‘What we have right now is certainly the Dollar on the back foot after the Fed’s decision, but over the past few months the Euro has had a little more gumption of its own. This is in part a perception that the crisis is off the boil. It’s also a reflection of the very good current account position of the Eurozone.’
Economists have forecast that a gauge of economic sentiment scheduled for publication at 15:00 GMT will show that confidence in the Eurozone advanced from -15.6 to -14.5 in September.
If this estimation proves accurate it will be the best result for over two years and another sign that the Eurozone is making slow but relatively steady economic progress.
As it stands the Euro is heading towards 1.7 per cent five-day gains against both the US Dollar and Yen, but a positive result this afternoon could see those advances extended.
The Euro is likely to experience some movement over the weekend as a result of the German federal elections, although fluctuations may be limited ahead of European Central Bank President Mario Draghi’s address to the European Parliament on the 23rd.
As one industry expert noted; ‘It’s hard to cap Euro gains unless the ECB delivers a clear message they will add to its easy monetary policy. The Euro’s high this year around $1.37 is in sight in the short term.’
Other Eurozone news to watch out for next week includes Eurozone manufacturing and services PMI, a German business climate index, a German consumer confidence survey and German inflation figures.
Euro (EUR) Exchange Rates
As of 12:10
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3544 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8445 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4347 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6126 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3937 >
