Currency Note Euro

Euro under pressure

By Smart Currency August 29th, 2014

A tough week for the euro has seen it continue to slide against the US dollar while losing some ground against sterling. A quiet day on Monday saw the euro trade relatively flat across the board. Tuesday saw the euro hit a fresh low against the US dollar as consumer confidence in the US was shown to have increased throughout July. In contrast to this, data from Germany on Wednesday showed that consumer confidence had fallen in the Eurozone’s largest economy. Despite this, the euro strengthened on the back of comments suggesting that the European Central Bank (ECB) may not have to resort to drastic measures any time soon to counter the threat of deflation. This optimism in the currency was short-lived however, with news on Thursday of increased unemployment in Germany, seeing the euro drop across the board.
Today sees the release of inflation data from across the Eurozone. With measures recently put in place to counter the threat of deflation, investors will be keeping a keen eye out for any increase in this figure. Any surprises could cause movements in euro markets.