Currency Note Euro

Euro has a steady week

By Ricky Bean October 11th, 2013

It has been a steady week for the euro as fluctuations against major peers have been limited. The single currency has shied away from the important 1.36 level against the US dollar and traded within a narrow range against sterling. European Central Bank President Mario Draghi has given little away in his two addresses this week, and whilst there is on-going speculation on how long interest rates will remain at 0.5% and whether or not new liquidity measures will be introduced, this has not translated into any significant investor reaction. The week’s data has been mixed with German trade balance data proving to be more positive than expected, which aided the implementation of a new agreement with the Chinese central bank that will increase use of the Yuan and bolster access to trade finance. On the other hand, Germany did see a decrease in monthly factory orders, whilst French growth in this area was more limited than expected. There is little influential data out today, so events elsewhere are likely to have the greatest bearing on euro performance. Call your trader now to see when we are likely see increased volatility in single currency pairings.