Currency Note Euro

Euro stutters as data disappoints

By Smart Currency November 15th, 2013

The euro started the week on a positive trajectory following the significant weakness that had resulted from the European Central Banks (ECB) decision to cut interest rates to 0.25% during the previous week. Euro appreciation can be attributed in part to speculation that the previous week’s depreciation was over-zealous, whilst data continued to be mixed. The fortunes of the single currency altered slightly when we reached Wednesday as an executive board member of the ECB stipulated that both quantitative easing and the implementation of negative interest rates remained possibilities. Following fluctuations in both directions, the seventeen-nation currency is at similar levels to what it was at the beginning of the week against both sterling and the US dollar. However, the high volume of unexpected data and events of late show how hard it is to predict market movements going forwards. Today, Consumer Price Index data for the Eurozone – a key inflation indicator – is set to be released in the morning and may be the catalyst for further sharp movements. Call your trader now to see how you can minimise the risk posed by further volatility.