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Posts tagged: Euro

Euro Recovers From Earlier Losses

By , March 28, 2014 8:47 am

One euro coin and a chartEuro is recovering from earlier losses today, eking out gains even after the latest German inflation data. Some Forex traders are waiting to analyze comments by Mario Draghi, and others are waiting to see what impact US data will have on the Forex market.

Even though the euro is heading higher, it’s not a day for big moves on the currency market. There’s a lot of uncertainty, with some concerned that the ECB will finally have to take some action to loosen monetary policy at its meeting next week.

The latest German inflation data was a bit disappointing, showing that the eurozone’s largest and strongest economy has slowing growth. The cost of living in Germany rose 1.0 per cent on a 12-month basis for March, which was down from February’s reading of 1.2 per cent. This represents a three-year low in German inflation.

With concerns about Ireland and other countries in the periphery still high, there is speculation that more might need to be done by the ECB. In the United States, data is being released about housing and energy and that should impact the FX market as well.

At 13:42 GMT EUR/USD is up to 1.3760 from the open at 1.3740. EUR/GBP is up to 0.8274 from the open at 0.8271. EUR/JPY is up to 141.3100 from the open at 140.4020.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

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Euro Dips on QE Talks

By , March 27, 2014 4:29 pm

Euro sign monument with ECB on backgroundThe euro dipped today as policy makers continued to talk about possible quantitative easing program that should boost the struggling economy of the European Union. This stance contrasts to the tightening bias of central bankers in the United States and Great Britain.

Luis Maria Linde, European Central Bank member, said that policy makers are concerned about the threat of deflation and QE is not impossible. Earlier, Jens Weidmann, Bundesbank President, said that negative interest rates may be used to bring the high exchange rate down. ECB President Mario Draghi signaled that the central bank is ready to take measures in case inflation falls materially.

This week’s reports from Germany, the main EU economic power, were sending mixed signals. The manufacturing Purchasing Managers’ Index and the business climate deteriorated, while the consumer climate remained steady. Market participants were concerned by the bad part of macroeconomic data, and this weighed on the euro.

EUR/USD dropped from 1.3779 to 1.3744 as of 21:38 GMT today. EUR/GBP sank from 0.8309 to 0.8272, and EUR/JPY went down from 140.58 to 140.47.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

Earlier News About the Euro:

Forex News

Euro Falls on Talk of Negative Interest Rates

By , March 26, 2014 10:31 am

Focus on 50-euro notesOnce again, ECB officials are talking about the possibility of negative interest rates to help boost the eurozone economy. As a result, the euro is heading lower against its major counterparts, even hitting a multi-week low against the US dollar.

Over the past couple of weeks, the euro has seen some strength as Forex traders consider that the ECB might not ease monetary policy further after all. With economic data in the 18-nation currency region still somewhat weak, though, it looks as though there is another case for looser policy.

At least, that’s what some ECB officials are saying. They are looking to talk down the euro — perhaps as a way to avoid making monetary policy changes. Governing council members Jens Weidmann, the head of the Bundesbank, said that negative interest rates are still an option. A stronger euro right now isn’t helpful for eurozone recovery, so it’s no surprise that policymakers are trying to keep a lid of euro strength.

Euro is lower against its counterparts, and hit a three-week low against the US dollar earlier.

At 13:03 GMT EUR/USD is down to 1.3792 from the open at 1.3827. EUR/GBP is also lower, dropping to 0.8339 from the open at 0.8364. EUR/JPY is down to 141.2865 from the open at 141.3955.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

Forex News

Slow Growth Drags Euro Lower

By , March 24, 2014 6:51 am

Various euro denominationsEuro is dragging today, heading lower as slower growth in the eurozone hurts performance. The German data was disappointing, and as was a PMI reading for the entire eurozone. With the dollar firming, thanks to the latest out of the Federal Reserve, it’s no surprise that the euro is struggling.

A release of preliminary PMI data for March indicates that the eurozone’s reading has slipped from a 32-month high. Even though the eurozone remains in expansion territory, the reality is that things could slip out of that territory fairly easily — and that has some worried.

Additionally, even though data from France is better than expected, things in Germany didn’t go as well as hoped. With the German private sector slowing in March, there are concerns about the entire eurozone because Germany is the largest and most influential economy in the 18-nation currency region.

Euro has received some small support from the indications that the ECB isn’t ready to loosen monetary policy further, but that might change if the recovery continues to move at this slow pace.

At 13:08 GMT EUR/USD is down to 1.3777 from the open at 1.3798 and far from the session high of 1.3828. EUR/GBP is down to 0.8352 from the open at 0.8382. EUR/CAD is down to 1.5453 from the open at 1.5466.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

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Euro Recovers Thanks to Account Surplus

By , March 21, 2014 8:04 am

Euro sign monumentEuro is recovering from its recent lows today, thanks in large part to a currency account surplus in the eurozone. For the first time in three days the 18-nation currency is gaining against the US dollar, and the euro is also up against other major counterparts.

The latest eurozone data shows a record current account surplus for the month of January, with portfolio investments rising to 16.9 billion euros. The news is positive for the eurozone, which has been languishing for months. This is just more evidence that the 18-nation currency region is on the road to recovery — slowly but surely.

Combine with other data that is at least somewhat encouraging, this latest data is providing some indication that the European Central Bank won’t have to ease monetary policy further. Even though the rhetoric is about keeping options open, many hope that the latest news will keep Mario Draghi and the rest of the policymakers at the ECB content with leaving things as they are.

Euro could still face some hurdles, and there are concerns about the employment situation, particularly in the periphery, but for now the currency is recovering.

At 13:37 GMT EUR/USD is up to 1.3789 from the open at 1.3779. EUR/GBP is up to 0.8358 from the open at 0.8349. EUR/JPY is up to 141.1250 from the open at 141.0750.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

Forex News

Euro Weaker on Expectations

By , March 20, 2014 7:35 am

20-euro bill and the map of EuropeEuro is weaker today, continuing its difficulties as concerns about the eurozone, and as expectations for a stronger US dollar, weigh on the 18-nation currency. The latest Fed expectations, along with changes to the ECB’s forward guidance, are keeping the euro down today.

After yesterday’s Federal Reserve announcement, which some Forex traders took to mean that US rates would begin rising as early as April 2015, the euro fell to fresh two-week lows. Today, the euro is still struggling as speculation about a stronger dollar, thanks to an earlier than expected end to loose monetary policy, weighs.

It’s also not helping the euro’s cause that the ECB has changed its forward guidance. Instead of using a threshold of 6.5 per cent to determine policy, the ECB has now said that it will look at a variety of factors — and wasn’t too clear about what those factors would be. This has some wondering if there is still more easing to come in the eurozone.

Economic and political concerns continue to dominate in the eurozone, so it’s not surprising to see some weakness for the euro.

At 13:47 GMT EUR/USD is down to 1.3769 from the open at 1.3833. EUR/GBP is down to 0.8347 from the open at 0.8361. EUR/JPY is down to 140.9860 from the open at 141.5425.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

Forex News

Euro Struggles After Trade Data

By , March 18, 2014 6:36 am

Multiple euro banknotes and coinsEuro is struggling a bit today following the release of January’s trade data. The disappointing data is leading to a slightly lower euro, even with the German Constitutional Court upholding the country’s participation in the eurozone bailout fund.

The eurozone’s trade surplus for January was much smaller than expected, leading to disappointment about the nature of the region’s economic recovery. Expectations for January’s trade surplus were for 12 billion euros, but the actual result was closer to 900 million euros. This much smaller trade surplus underscores the continued difficulties facing the eurozone economy. These challenges are very much in evidence today as the euro struggles against the dollar and the yen.

There was some good news for the 18-nation currency region, though. Germany’s highest court, which has been considering the legality of the eurozone bailout fund, decided that it was acceptable for Germany to participate. This means that there won’t be quite the same level of opposition to the fun, and that provides the ECB and eurozone leaders with a clear way forward when it comes to bailing out countries and propping up the euro.

At 12:52 GMT EUR/USD is down to 1.3900 from the open at 1.3922. EUR/JPY is down to 141.2045 from the open at 141.6655. EUR/GBP is up to 0.8386 from the open at 0.8368.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

Forex News

Euro Extends Drop on Draghi’s Comments

By , March 14, 2014 1:55 am

One euro coin and a chartEuropean Central Bank President Mario Draghi suggested yesterday that the euro is too strong, and the exchange rate should fall in the future. Such comments led to the decline of the shared 18-nation currency yesterday, and the drop was extended today.

Draghi explained that the exchange rate is becoming “increasingly relevant in our assessment of price stability” as it threatens inflation. He also said that the forward guidance “creates a de facto loosening of policy stance, as real interest rates are set to fall over the projection horizon” and added:

At the same time, the real interest-rate spread between the euro area and the rest of the world will probably fall, thus putting downward pressure on the exchange rate, everything else being equal.

Such comments were, obviously, not helpful to the euro. The currency was also under pressure from the general market sentiment that was quite downbeat and made traders avoid risk.

EUR/USD declined from 1.3867 to 1.3854 as of 6:22 GMT today after reaching the strongest level since October 2011 yesterday. EUR/JPY dropped from 141.22 to 140.72 and EUR/GBP retreated from 0.8341 to 0.8337.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

Forex News

Euro Continues to Rise Amid Concerns About Strength

By , March 12, 2014 11:49 am

Stack of one-euro coins on a chartEuro continues to log gains, even as many throughout the eurozone express concern about the euro’s recent appreciation. There are worries that the euro’s strength has been keeping the eurozone from seeing the kind of economic growth that would help the region overcome its recent problems.

Euro is higher again today, rising pretty much across the board. Since the middle of 2012, the euro has gained about 9 per cent against the US dollar. This appreciation is one of the problems with seeing a true recovery in the eurozone economy, according to many policymakers.

Policymakers have been expressing concern about inflation. The latest numbers show only a 0.8 per cent annual rate in February, which puts it well below the target of 2 per cent. Even though the eurozone appears to be seeing some growth, it is stagnating, and there are worries that the 18-nation currency region could slip back into recession. It doesn’t help that, once again, industrial output fell across the eurozone.

Since a strong euro seems to be hindering the economic recovery in the eurozone, there is speculation that the ECB will have to change its policy at least a little in order to boost growth.

At 13:48 GMT EUR/USD is up to 1.3897 from the open at 1.3860. EUR/GBP is up to 0.8364 from the open at 0.8341. EUR/JPY is down to 142.5965 from the open at 142.7790.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

Forex News

Euro Pulls Back After Remarks From ECB’s Constancio

By , March 11, 2014 8:39 am

One euro coin and a chartThe euro is pulling back today, dropping after remarks from Vitor Constancio, the Vice President of the European Central Bank. Constancio’s remarks are renewing concerns about the eurozone economy, and reviving speculation that the ECB could take steps to ease monetary policy.

After seeing some gains in recent sessions, the euro is pulling back a bit today. Concerns are on the rise as ECB Vice President Vitor Constancio remarked that the markets missed some of the implications of the forward guidance offered by ECB President Mario Draghi last week. Constancio emphasized that the ECB is still considering policy options and that the markets had missed — or misunderstood — the ECB’s assessment of slack in the eurozone economy.

The news sent the euro heading lower against the US dollar and the Japanese yen, dropping the 18-nation currency to a session low. Constancio said that the ECB still has quantitative easing and interest rate cuts on the table, and that has many concerned that the eurozone isn’t recovering as well as they would like, and renewing the idea that the ECB might have to act in order to get inflation up to its target.

At 13:14 GMT EUR/USD is down to 1.3851 from the open at 1.3876. EUR/GBP is down to 0.8336 from the open at 0.8337. EUR/JPY is down to 143.0460 from the open at 143.3025.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

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