Currency Note Euro

Euro rebounds (slightly) from Thursdays weakness

By Smart Currency November 12th, 2013

The euro had a much brighter start to the week following last week’s rate-cut-inspired slump. The single currency appreciated at a relatively consistent pace against both sterling and the US dollar. The euro’s “bounce” has come as a result of speculation that the initial weakness following the European Central Bank rate cut was perhaps excessive given the data that has been coming from the region. To the contrary, a Bloomberg survey has predicted inhibited growth in the Eurozone region with mean estimates putting GDP growth at just 0.1%. Investors will have to wait until Thursday to determine the accuracy of this prediction and we can expect a degree of volatility between now and then. Unless German Final Consumer Price Index data varies considerably from the preliminary release then there is likely to be an absence of influential Eurozone data tomorrow. However, there is still potential for fluctuation as the euro responds to events elsewhere and continued speculation concerning the true level of economic health in the Eurozone. Call your trader now to help negate the risk posed by volatility in the currency markets.