020 7898 0500The euro weakened significantly this week, dropping to levels not seen since as far back as January of 2013 against sterling. Despite being boosted on Monday with considerably better than expected investor confidence, this proved to be the only release to provide some support for the currency. With no major data out on Tuesday the euro’s performance stalled and by the time Wednesday came about any previous gains had all been lost. The single currency performed poorly against the continued strength of the pound; however, it fared slightly better versus its US counterpart. The last time the president of the ECB president spoke he expressed extreme caution and even went as far as to suggest a potential interest rate cut could be necessary. When he spoke this week he little to dispel these fears as he once again confirmed that he would consider a further reduction if money market rates climbed too high. Euro zone employment is due out this morning but aside from this nothing else of any note is expected. Call now to see how the euro is performing as the Eurogroup and ECONFIN meetings commence which will look to analyse the current state of the economy in Europe.
