Currency Note Euro

Euro steady as we wait for the ECB’s next move

By Smart Currency January 17th, 2014

The euro has had a quiet week, seeing little in the way of notable movements against key trading partners. Against sterling we have seen the euro strengthen slightly and rates hover on or around the 1.2 mark for most of the week with mixed data failing to force a movement one way or the other. Meanwhile, the single currency traded within a similarly narrow range against the US dollar for the early part of the week before weakening moderately towards the end, partly in response to slowing German growth figures. It was revealed on Wednesday that Europe’s largest economy grew by 0.4% in 2013, which was marginally lower than median predictions. Data on the whole was mixed and not overly influential. Tuesday saw Industrial Production figures for the Eurozone revealing marginally higher than expected growth at 1.8%, while Eurozone inflation data – in the form of Consumer Price Index figures – came out as expected at 0.8%. Low levels of inflation are still a major concern for the Eurozone and any anomalous data indicators relating to current levels are likely to have an impact on euro crosses. Looking ahead to today, the German Constitutional Court ruling on the legality of the European Central Bank (ECB)’s Outright Monetary Transactions Policy (OMT) may have a bearing on performance; there are no other data releases today that are likely to be influential. Call your trader now to take stock of this week’s movements.