Currency Note Euro

Euro suffers heavy losses against sterling

By Smart Currency September 19th, 2014

The euro started off relatively flat at the start of the week but suffered heavy losses against sterling following the Scots decision to reject independence.

There was some data released with German Economic Sentiment figures coming in above forecast whilst the European Central Bank put a large emphasis on the significance of waning inflation levels across the bloc. The yearly Eurozone inflation figure of 0.4% was released on Wednesday afternoon and, although still worryingly low, came in above the forecasted figure of 0.3%, which provided some respite. However, the market’s reaction to this data was relatively muted with the weeks focus on the Scottish referendum for independence (which came out overnight). Sterling had weakened significantly in the weeks leading up to the referendum; but, strengthened significantly as it became clear the “No” campaign would be victorious. Resultantly, sterling soared against the euro, with the euro falling to a 2-year low.