Euro weakens as US start to taper

German Business Climate data came out largely as expected yesterday, causing euro movements to be largely determined by events outside of the Eurozone. The single currency depreciated sharply against a resurgent sterling in response to a further drop in the UK unemployment rate, whilst again trading within a relatively narrow range against the US dollar ahead of the Federal Bank’s central bank meeting. Once the US taper was announced we saw the euro weaken rapidly against the US dollar and sterling. Eurozone Current Account figures are due out this morning and will detail the difference in value between imports and exports in the seventeen-nation bloc. The surplus fell unexpectedly during the previous month so a continuation of this trend is likely to spur further euro weakness, whilst improved figures will have the opposite effect. Call your trader now to take stock ahead of the Christmas period.