Currency Note Euro

Euro reaches fresh highs against sterling and the US dollar

By Ricky Bean March 14th, 2014

After breaking through 2011 highs against the US dollar at the end of the previous week, the euro started this week on a strong note due to limited date releases and the still-shaky geo-political climate overshadowing markets.

The euro saw additional gains mid-week following last week’s decision by the European Central Bank (ECB) to hold interest rates at 0.25%. This was followed by cautious optimism over a possible increase in the inflation rate further down the line, as well as positive rhetoric by the ECB – both contributed to increased confidence in the single currency and therefore to the relative strengthening of the euro.

The euro strengthened to its highest point in 2014 against sterling yesterday, whilst hitting a two-and-a-half year high against the US dollar before retracting most of its gains.

Today there are no major releases from the Eurozone itself and any significant movement is more likely to be relative to other news in the market. It is worth considering the region’s geo-political instability between now and Monday, which, unlike the markets, does not pause during the course of the weekend.

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