Weekly summary:
This week was a similar story to last, as negative news from the Eurozone wore on the common currency.
First, ratings agency Fitch downgraded the Italian sovereign credit rating to BBB+ with a negative outlook. The recent election drama and economic concerns were cited as key reasons behind Italy losing its A- rating.
This disappointing development was swiftly followed by a report which showed that industrial output in the 17-nation currency bloc declined by more-than-expected in January.
Consequently, the Euro posted notable declines against its British and American counterparts.
The Euro’s descent continued on Thursday as data revealing a 7- year low in Eurozone employment levels made investors turn away from the risky asset. The news saw the common currency drop to 3-month low against the US Dollar.
On Friday however the Euro was able to recoup some of its recent losses after EU leaders announced their intention to loosen budget restrictions at the end of the first day of a summit in Brussels. Their decision stemmed from a desire to give struggling nations longer to reduce their deficits in order to boost growth.
The Euro also gained from the news that Eurozone CPI slowed to 1.8 per cent in February. Although the result had been predicted by economists the Euro still gained slightly on the US Dollar immediately after the report’s release.
Euro Exchange Rates (as of 12:15)
The Euro is trading against the Pound in the region of 0.8618
The Euro is trading against the US Dollar in the region of 1.3054
The Euro is trading against the Australian Dollar in the region of 1.2599
The Euro is trading against the New Zealand Dollar in the region of 1.5887
The Euro is trading against the Canadian Dollar in the region of 1.3332