Currency Note Euro

Euro’s surprise drop against US dollar and sterling

By Ricky Bean February 16th, 2016

Monday turned out to be a poor start to the week for the euro, as the single currency lost ground across the board. The euro performed particularly badly against the US dollar, which came as a surprise on a US bank holiday. European Central Bank (ECB) President, Mario Draghi, spoke yesterday afternoon, but he, too, gave little away on any changes in monetary policy, causing investors to count the days to the ECB meeting in March. With no data released on Monday, the euro found little support, as it also was down against sterling.

This morning at 10:00 am we have the first major release of the week for the euro and it is expected to be an important one – ZEW German Business Confidence Data, an amalgamation of leading economist and analysts’ business sentiment and a key indicator of economic sentiment and performance – which is expected to fall quite heavily from 59.7 down to 56.

We also eagerly wait for announcements from the EU Summit later this week, where we expect to hear the results of the UK-EU negotiations and anticipate an announcement for the EU Referendum date.

This will be an important week for the euro – stay in regular contact with your trader to get the latest rates and market information, so you can plan an effective currency strategy.