Currency Note Euro

Euro increases gains against sterling and US dollar

By Ricky Bean March 13th, 2014

Euro increases gains

Yesterday saw the euro make positive movements against both sterling and the US dollar as it strengthened to its highest marks against both currencies for time. The single currency hit its highest point against the pound this year, while it hit a fresh two-year high against the greenback. One of the main reasons for this was that, although the European Central Bank decided to keep interest rates on hold at 0.25%, they struck a cautiously optimistic tone for increasing rates of inflation. Traders seized on this and it imbued them with renewed confidence in the single currency.

Looking ahead to the rest of the day, we have the ECB monthly bulletin which will reveal the data that was considered when the decision to keep interest rates on hold was made. More positive figures are likely to support the recent surge in the euro and we could see some further gains made today. On the other hand, if the data is unconvincing and doesn’t clearly support President Mario Draghi’s decision, it is possible we could see some weakening.

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