Last week several factors affected expectations surrounding whether the Federal Reserve will opt to taper stimulus before or after next spring. The US Dollar consequently had a fairly rocky five-days and closed trading weaker against the Euro on Friday.
The Euro is currently trading against the US Dollar in the region of 1.3534
Meanwhile, the Euro derived support from European Central Bank President Mario Draghi’s market-calming comments regarding negative interest rates.
EUR/USD gains were also enabled by reports which showed an impressive improvement in German business confidence.
Recent data for the Eurozone may have been a bit hit-and-miss, but the strong German figures prompted this response from economist Andrew Wilkinson; ‘It looks like we’re going to see the euro zone return to genuine growth in 2014. There seems to be a finite magnitude in terms of how far the ECB can go to cut rates. That’s no longer driving investors away from the euro.’
So what news is most likely to impact the common currency this week?
Well, in a comparatively heavy news week for the Eurozone, Euro movement is most likely to be triggered by the German GfK consumer confidence survey, German unemployment and inflation figures, Eurozone economic/industrial/consumer confidence, German retail sales and the Eurozone’s CPI.
Of course, fluctuations in the EUR/USD pairing could also be triggered by US housing/consumer confidence and durable goods orders data.
Euro (EUR) Exchange Rates
As of 07:05 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3534 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8351 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4828 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6519 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4298 >
