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Posts tagged: Euro

Euro Lower on Quantitative Easing Possibility

By , October 31, 2014 3:33 am

Euro sign monumentEuro is lower against most of its major counterparts today, thanks in part to statements from an ECB policymaker. While quantitative easing isn’t quite on the table, officials aren’t ruling it out, and the possibility of QE, along with other measures meant to weaken the euro in the name of stimulus, is weighing on the 18-nation currency.

Earlier, Ewald Nowotny, a policymaker for the ECB and the head of Austria’s central bank, said that quantitative easing wasn’t being ruled out. While he has been known to vote against U.S.-style quantitative easing in the past, Nowotny’s comments indicate that this method of economic stimulus might be on the table if needed.

Nowotny did temper his comments by insisting that current efforts to stimulate the economy would have to be evaluated before going ahead with any new schemes, like quantitative easing. So, for now, things are likely to remain as they are. Long-term slow growth remains a challenge for the eurozone, and concerns about the periphery, particularly Greece are also still impacting the performance of the euro against its major counterparts.

At 10:26 GMT EUR/USD is down to 1.2569 from the open at 1.2614. EUR/GBP is down to 0.7855 from the open at 0.7883. EUR/JPY is up to 140.3000 from the open at 137.7580.

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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Data Helps Euro Pare Some of Its Losses

By , October 30, 2014 5:47 am

Mixed euro billsEuro is falling against its major counterparts today, but some of the losses are being pared, thanks to the latest data releases. Some of the regions of the eurozone are reporting progress, and that is reducing some of the difficulty with the euro.

The latest data out of the eurozone, while not spectacular, at least shows some progress. Germany saw a drop in the number of people unemployed this month, even though the unemployment rate remains the same. Another report showed that Spain had economic growth of 0.5 per cent in the third quarter. The news is helping the euro pare some of its earlier losses.

However, even with the data, the euro is still struggling to a degree. There are more concerns about Greece and its economic situation, not to mention predictions of more volatility in Greece. And the overall economic growth of the eurozone remains very sluggish. There isn’t a lot of reason for ECB policymakers to do anything but continue to ensure that the euro remains somewhat weak against its major counterparts in the hope that this will help stimulate the economy.

At 10:47 GMT EUR/USD is down to 1.2590 from the open at 1.2632. EUR/GBP is down to 0.7870 from the open at 0.7889. EUR/JPY is down to 137.2341 from then at 137.5650.

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

Forex News

Euro Trades Down Against US Dollar, Japanese Yen

By , October 29, 2014 5:19 am

Euro sign monument with ECB on backgroundEuro is gaining ground against the UK pound, but losing ground against the US dollar and the Japanese yen. The 18-nation currency continues to struggle as risk appetite fades from the Forex market, and as expected policy divergence between the United States and the eurozone widens.

The latest measure of consumer confidence in the United States underscores the positive direction the US economy is taking. The euro is down against the greenback, in part, on that news. Trade has been choppy, though, as Forex traders await a policy announcement from the Fed. Risk appetite is fading as well, and that is weighing on the euro.

Euro faces a number of hurdles as well, which are sending it lower. The economy continues to send up red flags, and there isn’t a lot else that can be done, especially since it’s in the best interest of the ECB for the euro to be somewhat weak for the sake of economic recovery. Euro is gaining against the pound, though, as uncertainty and turmoil in the United Kingdom weigh on the sterling.

At 10:25 GMT EUR/USD is down to 1.2733 from the open at 1.2735. EUR/GBP is dup to 0.7900 from the open at 0.7894. EUR/JPY is down to 137.6120 from the open at 137.7280.

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 Gets a Little Help From Stress Test Results

By , October 27, 2014 4:20 am

Counting 50-euro billsEuro is getting a little help today in Forex trading, thanks to the latest round of stress test results from banks. Things seem to be improving for banks, and that means that there are fewer fears regarding the eurozone. There is still a ways to go for the eurozone recovery, and for the 18-nation currency, but things are looking a little bit better.

The latest round of bank stress tests administered by the European Central Bank indicate that things aren’t so bad with eurozone lenders. The latest stress tests took a look at balance sheets, and discovered that the situation is improving. This news is giving a bit of a boost to the euro today. The 18-nation currency is gaining ground against some of its counterparts on the news. Even though the latest German Ifo data is a little disappointing, the relief due to the stress test results is helping the euro.

Euro is still struggling against the pound, but that has more to do with economic divergence than anything else right now. The good news about stress tests is helping the euro against the dollar, though.

At 10:25 GMT EUR/USD is up to 1.2681 from the open at 1.2674. EUR/GBP is down to 0.7876 from the open at 0.7879. EUR/JPY is down to 136.70 from the open at 137.31.

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

Forex News

Euro Gains on Manufacturing Data

By , October 23, 2014 3:59 pm

1,200 eurosThe latest manufacturing data is in for the eurozone, and it’s more positive than expected. As a result, the euro is gaining ground against many of its counterparts. This might the news that the 18-nation currency region has been waiting for, since it signals that maybe another recession isn’t inevitable after all.

Today, a release of a Purchasing Managers’ Index for the eurozone shows that the situation has improved. PMI rose to 50.7 for October, which is an improvement over the predicted fall to 49.9. The reading remains above 50, which indicates expansion, and is generally considered a better thing for the economy. On top of that, factories in Germany are recovering from a slump last month.

The good news is also helped along by indications that Spain’s economic recovery is picking up steam. While Germany is the large economic driver for the euro region, the periphery has been dragging the eurozone down. Recovery by Spain could go a long way toward getting the periphery out of trouble and increasing the stability of the eurozone.

It’s little surprise that we’re seeing some risk appetite on this news, and that the euro is heading a little bit higher.

At 10:21 GMT EUR/USD is up to 1.2665 from the open at 1.2652. EUR/GBP is up to 0.7910 from the open at 0.7882. EUR/JPY is up to 136.1850 from the open at 135.5190.

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

Forex News

Euro Falls Back After Rally

By , October 16, 2014 4:21 am

Euro banknotesEuro is falling back now, falling a rally that took place yesterday and in earlier trading. Euro surged higher, especially against the US dollar and the Japanese yen, earlier, but now things are changing. Concerns about risk are back on the table, and lower commodity prices are having their impact.

Euro got a boost earlier, thanks to US economic data that disappointed. High beta currencies surged on the news, and the greenback plummeted. That’s all changing now, thanks to the fact risk aversion is high, and there just isn’t much to support the euro.

Yes, US economic data was disappointing. But the eurozone data is worse, and policymakers worry that they are staring down a triple dip recession. Not only that, but commodities continue to do poorly. The euro is often supported when gold prices are, and gold has been struggling lately. The recent difficulties for oil are not helping.

Risk aversion is also high. Stocks are down around the world, and there are worries about continued unrest in the Middle East, and every now and then someone remembers Russia, which continues to worry Europe.

At 10:48 GMT EUR/USD is down to 1.2727 from the open at 1.2838. EUR/GBP is down to 0.7960 from the open at 0.8013. EUR/JPY is down to 134.5680 from the open at 135.9830.

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

Forex News

Euro Mostly Lower as Germany Cuts Growth Forecast

By , October 15, 2014 3:54 am

One euro coinEuro is losing ground against some of its counterparts as the latest economic data is released throughout the 18-nation currency zone. Even though Germany’s CPI reading met expectations, the country had to slash its growth forecast.

The latest CPI data out of Germany indicates that inflation remains at 0.8 per cent month-to-month. This was an expected reading, so it’s not out of character and has little bearing on the euro’s performance today.

However, the news that policymakers have lowered the growth forecast for Germany is a different story. Germany is revising its expectations to 1.2 per cent annual growth for 2014 and for 2015. This is a change from an expected 1.8 per cent for 2014 and 2.0 per cent for 2015.

With this change in growth forecast for Germany, it is apparent that the rest of the eurozone could be affected, since Germany is the largest economy in the 18-nation currency region, and generally considered the economic leader. The news is weighing a bit on the euro, causing it to fall against the dollar and the pound, which are both poised for more positive changes in the near term.

At 10:25 GMT EUR/USD is down to 1.2645 from the open at 1.2648. EUR/GBP is down to 0.7937 from the open at 0.7959. EUR/JPY is up to 135.6620 from the open at 135.5100.

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 Receives Respite

By , October 13, 2014 5:36 am

A fan of 500-euro billsEuro is heading higher against many of its major counterparts today, gaining ground as a respite from recent difficulties. Once again, the ECB is promising to do what it takes to keep the eurozone afloat, and that is providing at least some support for the 18-nation currency.

Recently, the euro area was pegged as the weakest economic segment in the world economy, and leaders encouraged to do what they can to stimulate growth. In the past, ECB policymakers have pledged to keep the eurozone afloat, and do what it takes to preserve the euro, and it appears that no country seriously wants out right now.

As a result, the euro is getting a little bit of support in Forex trading, making some gains against its major counterparts. These gains, however, might be short-lived. ECB Governing Council member Ewald Nowotny indicated that the euro is likely to weaken further as policymakers attempt to stimulate the eurozone economy.

And there might need to be a lot of stimulus, since in-fighting amongst member countries about austerity vs. exports and with Germany throwing its weight around, there’s not a lot of other help for the eurozone economy.

At 10:57 GMT EUR/USD is up to 1.2685 from the open at 1.2632. EUR/GBP is up to 0.7880 from the open at 0.7858. EUR/JPY is up to 136.2070 from the open at 135.8400.

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

Forex News

Draghi Comments Bring Euro Down

By , October 10, 2014 4:09 am

Euro sign monument with ECB on backgroundOnce again, Mario Draghi is a bit of a downer. His remarks yesterday at the Brookings Institution are dragging on the euro, since they indicate that the ECB is ready to double-down on stimulus measures likely to weigh on the 18-nation currency.

Yesterday, ECB President Mario Draghi spoke at the Brookings Institution about what’s next for the euro and the eurozone. He is mentioned that the ECB remains committed to helping to stimulate the flagging eurozone economy, and that it would do whatever is necessary to make that happen — no matter what the balance sheet looks like in the end.

Draghi also predicted that the eurozone would be in a place that the ECB could start increasing interest rates in 2017. It’s no surprise that Goldman Sachs lowered its forecasted rate for the EUR/USD, and that the euro is heading lower against the US dollar today.

There isn’t a whole lot left for policymakers in the eurozone to try, and their last, best hope is to use the 18-nation currency as a kind of lever to try to get the economy moving again.

At 10:22 GMT EUR/USD is down to 1.2664 from the open at 1.2711. EUR/GBP is up to 0.7890 from the open at 0.7879. EUR/JPY is down to 136.37 from the open at 136.93.

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 Against Fundamentals to Rally

By , October 8, 2014 8:38 am

20-euro bill and the map of EuropeWhile the euro was rising earlier today, the shared 18-nation currency has a hard time keeping its gains and was falling against the US dollar, though it trades near the opening level as of now. It is not surprising to see softness of the euro considering that fundamentals were playing against the currency of the eurozone.

There were plenty of reasons for the euro to fall. The major one was yesterday’s growth outlook from the International Monetary Fund as the IMF lowered projections for eurozone economic growth both for 2014 and 2015. The decline of German’s industrial production was another negative factor for the currency.

So why the euro was able to halt its decline even as fundamentals are unfavorable to the currency? One of the possible reasons is that the currency is too oversold and needs a period of consolidation before another thrust down. Yet some analysts argue that the euro may have a period of sideways trading or perhaps even a rally in case the Federal Reserve minutes released today show that US policy makers are not in a hurry to raise interest rates.

EUR/USD dropped from 1.2669 to 1.2623 before trading at 1.2678 as of 13:07 GMT today. EUR/JPY was up from 136.85 to 136.93, while EUR/GBP traded near the opening rate of 0.7870.

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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