Currency Note Euro

Euro strong against the US dollar

By Ricky Bean October 22nd, 2013

As the dust settles following the narrow avoidance of a US default the euro appears to be enjoying some modest benefits from the fallout. Yesterday saw some small fluctuations against the US dollar whilst the rate remained just below 1.37. We are very close to the year-high seen in February and may indeed see new highs if this trend continues. Investor confidence in the US dollar took a knock following the prolonged shutdown and some investors seem to have seen the seventeen-nation currency as a viable alternative safe-haven currency as data from the Eurozone improves. In terms of short-term performance there is little data set to be released today or tomorrow that is likely to affect euro pairings, however traders may begin to speculate ahead of Thursday’s key releases. Both German and French flash manufacturing data could cause movement on Thursday. Expectations are for figures to show modest growth for both nations so deviations could determine whether the single currency will continue to strengthen or not. Call your trader now to manage your euro requirements ahead of Thursday’s releases.