Currency Note Euro

Euro impacted by news from elsewhere

By Smart Currency December 20th, 2013

The euro started the week in an uneventful fashion, showing little movement against sterling and the US dollar. Data releases were mixed with French Manufacturing figures showing greater contraction than expected alongside French Services figures, yet German Manufacturing data revealing greater growth than expected as the Eurozone’s largest economy continues to lead the Eurozone recovery. The impact of data releases was limited throughout the week and the sharp movements in euro pairings came largely as a result of events elsewhere. It wasn’t until Wednesday that we saw sharp depreciation against both sterling and the US dollar in response to UK unemployment data and the Federal Open Market Committee (FOMC) Statement respectively. The single currency again began to plateau yesterday, with the sterling – euro rate hovering notably at just below 1.20. Looking ahead to today, German inflation data, in the form of Producer Price Index figures, will be released in the morning and are predicted to show that there has been little movement in the price of manufactured goods. Today is also the second day of the EU Economic Summit where a range of issues including monetary and banking union are to be discussed giving rise to volatility. Call your trader now to take stock of this week’s shifts and ensure you have the right strategy in place for the festive period.