Weekly summary:
At the close of last week the Euro was able to gain on the US Dollar after the latter currency drooped following the release of disappointing US employment figures.
After dipping slightly over the weekend the EUR/GBP pairing hit a 3 ½ year high as Fed Chairman Ben Bernanke asserted that US economic recovery wasn’t where they would ‘like it to be’.
The Euro went on to hit a fresh 3-year high against the Japanese Yen on Wednesday, although data showing an unexpected drop in German exports did cause the common currency to dip against the US Dollar.
High demand at Spanish and Italian bond sales on Thursday helped the Euro recoup losses, but the currency fell against the US Dollar and British Pound as the week came to an end.
On Friday EU Finance Ministers gathered in Brussels for a two-day meeting, at which they are expected to discuss issues ranging from the terms of Cyprus’ bailout and Germany’s resistance to Eurozone banking reforms to the current problems in Slovenia.
Various reports from the Eurozone, including one which said that the finance ministers were attempting to reach an agreement regarding extending the maturities of rescue loans issued to Ireland and Portugal, renewed concerns in the Eurozone’s economic stability during European trade.
As one currency strategist intimated: ‘The Euro looks somewhat vulnerable. The resilience of the Euro has been surprising of late, and we are starting to look back with a closer eye on all events European. The structural negatives are there wherever you look, whether it’s Cyprus, Portugal, Slovenia or Italian politics.’
Euro Exchange Rates (as of 16:03 pm GMT)
The Euro is trading against the Pound in the region of 0.8520
The Euro is trading against the US Dollar in the region of 1.3082
The Euro is trading against the Australian Dollar in the region of 1.2428
The Euro is trading against the New Zealand Dollar in the region of 1.5200
The Euro is trading against the Canadian Dollar in the region of 1.3230