Last week’s inflation data and unemployment figures for the Eurozone were moderately better than forecast, and the Euro was able to approach a one-month high against the US Dollar before the close of trade on Friday.
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3603 >
With joblessness in the region falling for the first time in over two and a half years and deflation fears somewhat eased by the CPI result, the prospect of the European Central Bank introducing negative interest rates appeared less likely.
Consequently the common currency enjoyed widespread gains against several of its most traded peers and notably hit an almost five-year high against the safe-Yen.
The Euro did struggle against a bullish Pound however as ongoing signs of economic recovery in the UK pushed the EUR/GBP pairing towards a three-week low.
In a comparatively heavy news day, Euro movement could be triggered by manufacturing PMI reports for Germany and the Eurozone.
Previous estimates put a gauge of manufacturing for the currency bloc at 51.5 in November, just above the fifty mark separating growth from contraction, while the Eurozone’s largest economy gave a reading of 52.5.
A surprising result may inspire Euro movement but US ISM manufacturing data will also have an impact on EUR/USD trading.
Meanwhile, UK manufacturing PMI could affect the Euro’s performance against the Pound in the hours ahead.
Over the next five days the most influential Eurozone reports to look out for include German/Eurozone services PMI, Eurozone GDP, Eurozone retail sales figures and of course the European Central Bank rate decision on Thursday.
If this week’s data surprises to the upside, lowering the odds of further ECB intervention, the Euro may extend gains against its US counterpart.
Euro (EUR) Exchange Rates
As of 07:05 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3603 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8287 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4862 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6691 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4444 >
