The Euro began the week weaker against the majority of its peers as investors expected this week’s round of Eurozone data releases to reveal the economic damage caused by the Eurozone crisis, an expectation that was proven right.
On Tuesday the Euro declined for a third day against the US Dollar after the Eurozone regions GDP contracted for a sixth-straight quarter. The Euro then weakened further against the US Dollar and Sterling after European Central Bank policy-maker Ignazio Visco told a news website that the Eurozone’s Central Bank could cut its deposit rate into negative territory.
Midweek, the Euro tumbled to a six-week low against the US Dollar and weakened against the Pound after data showed that the German economy grew at a slower than estimated rate. German GDP rose by just 0.1% whilst the French economy contracted by 0.2%. The weaker-than-predicted The Euro then weakened for a sixth consecutive day against the Dollar, its longest losing streak in a year.
On Friday the Euro weakened further against the US Dollar due to a combination of continuing weak data out of the Eurozone and rising speculation that the US Federal Reserve could announce that it would slow the rate of its bond purchases. The Eurozone economy has slipped deeper into recession following the release of GDP data that showed that the troubled region contracted by 0.2% in the first quarter of 2013.
The Euro then made gains against the British Pound after new car sales data surprised investors by posting its first gain since September 2011. Optimism in the Eurozone increased as a result bolstering the currency edged up against the Pound and US Dollar.
Euro Exchange Rates (as of 11:10 am GMT)
The Euro is trading against the Pound in the region of 0.8449
The Euro is trading against the US Dollar in the region of 1.2881
The Euro is trading against the Australian Dollar in the region of 1.3199
The Euro is trading against the New Zealand Dollar in the region of 1.5884
The Euro is trading against the Canadian Dollar in the region of 1.3175
The Pound is trading against the Euro in the region of 1.1835
The US Dollar is trading against the Euro in the region of 0.7764
The Australian Dollar is trading against the Euro in the region of 0.7567
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