News

Euro Recovers from 3-1/2-Month Low
The euro appreciated towards $1.19 at the end of July, after touching last week its weakest level since early April, as the dollar hit a two-week low after the US Federal Reserve said that it was in no rush to withdraw stimulus. At the same time, investors expect that the European Central Bank will remain dovish for some time while worries about the spread of the Delta variant mounted. The ECB pledged last week to keep interest rates at record-low levels for even longer in an effort to bring inflation back to its 2% target, while ECB President Christine Lagarde warned about a fresh wave of the coronavirus pandemic and its impact on the economic recovery. The updated guidance pushed expectations for an interest rate hike further into the future as the ECB sees inflation below 2% until at least 2023.
Published on 2021-07-29

Euro Holds at $1.18
The euro stood at the $1.18 mark at the end of July, hovering around its weakest level since early April and heading for a 0.4% monthly loss against the greenback, amid expectations that the European Central Bank will remain dovish for some time and as worries about the spread of the Delta variant mounted. The ECB pledged last week to keep interest rates at record-low levels for even longer in an effort to bring inflation back to its 2% target, while ECB President Christine Lagarde warned about a fresh wave of the coronavirus pandemic and its impact on the economic recovery. The updated guidance pushed expectations for an interest rate hike further into the future as the ECB sees inflation below 2% until at least 2023.
Published on 2021-07-26

Euro Trades Around 3-1/2-Month Lows
The euro remained below the $1.18 at the end of the week, hovering around its weakest level since early April, amid expectations that the European Central Bank will remain dovish for some time and worries about the spread of the Delta variant. The ECB pledged Thursday to keep interest rates at record lows for even longer in an effort to bring inflation back to its 2% target and as ECB President Christine Lagarde warned about a fresh wave of the coronavirus pandemic and its impact on the economic recovery. The messaging pushed expectations for an interest rate hike further into the future as the ECB sees inflation below 2% until at least 2023.
Published on 2021-07-23

Euro Falls Back Below $1.18
The euro erased early gains to fall again below the $1.18 mark on Thursday, remaining close to a recent three-and-a-half-month low, after the European Central Bank left interest rates and asset purchases unchanged as expected and tweaked its forward guidance to reflect the new inflation target. Policymakers now expect interest rates to remain at their present or lower levels until inflation reaches 2% well ahead of the end of its projection horizon and acknowledged it could rise moderately above 2% for some time.
Published on 2021-07-22

Euro Rises Above $1.18
The euro bounced back above the $1.18 mark on Thursday, as an unexpected increase in US jobless claims hit the dollar. Still, it remained close to three-and-a-half-month lows after the European Central Bank left interest rates and asset purchases unchanged as expected and tweaked its forward guidance to reflect the new inflation target. Policymakers now expect interest rates to remain at their present or lower levels until inflation reaches 2% well ahead of the end of its projection horizon and acknowledged it could rise moderately above 2% for some time.
Published on 2021-07-22

Euro Edges Down as Investors Await Clarification
The Euro weakened slightly to $1.17 on Thursday after the ECB's monetary policy decision. The central bank left interest rates and asset purchases unchanged as expected and tweaked its forward guidance to reflect the new inflation target. Policymakers now expect interest rates to remain at their present or lower levels until inflation reaches 2% well ahead of the end of its projection horizon and acknowledged it could rise moderately above 2% for some time. Still, traders await President Lagarde press conference for further clarification and details on the new guidance and the impact it could have on the ECB monetary policy.
Published on 2021-07-22

Euro Hits 15-week Low
EURUSD decreased to a 15-week low of 1.1766
Published on 2021-07-19

Euro Hits 3-1/2-Month Low
The euro traded below $1.18 during the third week of July, hovering around its weakest level since early April, as worries about the spread of the Delta variant mounted ahead of the key summer holiday season. Meanwhile, the European Central Bank is likely to update its guidance on monetary stimulus when it meets on Thursday. The bloc's central bank is expected to stick with an ultra-easy monetary policy stance after announcing last week a strategy review that will see policymakers targeting inflation at 2%, and even allow it to run higher that level for a brief period. Last week, ECB President Christine Lagarde said the central bank's response to the pandemic crisis has to be "persistent" and that policymakers will not repeat their past mistake of tightening policy too early.
Published on 2021-07-19

Euro at Over 3-Month Low
The euro traded around $1.18 in mid-July, having touched its lowest level since early April, after European Central Bank President Christine Lagarde said on Sunday that the central bank will update its guidance on monetary stimulus at its next meeting, and indicated that fresh policy might be introduced in 2022 to replace the current Pandemic Emergency Purchase Program. Later on, Lagarde said the central bank's response to the pandemic crisis has to be "persistent" and that policymakers will not repeat their past mistake of tightening policy too early. Elsewhere, investors digested a larger than expected increase in US consumer prices and worries about the spread of the Delta variant mounted ahead of the key summer holiday season.
Published on 2021-07-13

Euro Little-Changed to Start the Week
The euro held steady at $1.19 as the ECB unveiled a change in a policy regime that allows inflation to overshoot. The ECB adopted a 2% inflation target over the medium term, compared to the previous "below but close to 2%" to help the economic recovery. Still, the Euro remains close to one of its weakest levels since early April as dovish comments from ECB officials contrasted with US Federal Reserve's surprise hawkish turn at its latest meeting. At the same time, prospects of a solid economic recovery in Europe continued to be supported by upbeat economic data, while worries about the spread of the Delta variant mounted ahead of the key summer holiday season.
Published on 2021-07-12

Euro Strenghtens on New ECB Strategy
The euro appreciated further to around $1.185, as the ECB unveiled a change in a policy regime that allows inflation to overshoot. The ECB adopted a 2% inflation target over the medium term, compared to the previous "below but close to 2%" to help the economic recovery. Still, the Euro remains close to one of its weakest levels since early April as dovish comments from ECB officials contrasted with US Federal Reserve's surprise hawkish turn at its latest meeting. At the same time, prospects of a solid economic recovery in Europe continued to be supported by upbeat economic data, while worries about the spread of the Delta variant mounted ahead of the key summer holiday season.
Published on 2021-07-08

Euro Little-Changed Ahead of ECB Accounts
The euro held steady at $1.18 in early July, remaining close to one of its weakest levels since early April, amid broad dollar strength and as investors await the ECB's monetary policy meeting accounts for further clarification on the next monetary policy steps. At the same time, ECB top policymakers gather this week to discuss the central bank's biggest strategy review in almost 20 years, including a new formulation of the ECB’s inflation target. Officials will also be debating the central bank's role in combating climate change and inequality. In June, the euro lost 3.1% against the greenback as dovish comments from ECB officials contrasted with US Federal Reserve's surprise hawkish turn at its latest meeting. At the same time, prospects of a solid economic recovery in Europe continued to be supported by upbeat economic data, while worries about the spread of the Delta variant mounted ahead of the key summer holiday season.
Published on 2021-07-07

Euro Little-Changed to Start the Week
The euro was little-changed at $1.18 during the first full week of July, remaining close to one of its weakest levels since early April, as investors await the FOMC minutes due Wednesday and the ECB's monetary policy meeting accounts on Thursday for further clarification on the next monetary policy steps. Meanwhile, ECB top policymakers gather this week to discuss the central bank's biggest strategy review in almost 20 years, including a new formulation of the ECB’s inflation target. Officials will also be debating the central bank's role in combating climate change and inequality. In June, the euro lost 3.1% against the greenback as dovish comments from ECB officials contrasted with US Federal Reserve's surprise hawkish turn at its latest meeting. At the same time, prospects of a solid economic recovery in Europe continued to be supported by upbeat economic data, while worries about the spread of the Delta variant mounted ahead of the key summer holiday season.
Published on 2021-07-05

Euro Tries to Recover from 3-Month Lows
The euro edged up to $1.185 on Friday, after economic data showed the US job growth accelerated to a ten-month high in June, despite a slight increase in the unemployment rate and a weaker-than-expected wage growth. Still, the common currency remained at one of the lowest levels since early April, as recent dovish comments from ECB officials contrasted with US Federal Reserve's surprise hawkish turn at the June meeting. Meanwhile, economic data for the Eurozone released earlier this week showed factory activity growth hit a new record in June and the unemployment rate dropped to a year low in May, adding to signs of a solid economic recovery. Elsewhere, investors worried about the spread of the Delta variant that has prompted some countries such as the UK and parts of Europe to undertake or plan renewed lockdowns. In June, the euro lost 3.1% against the greenback.
Published on 2021-07-02

Euro Hits 3-Month Low in July
The euro touched $1.184 in early July, the lowest level since April 6th, as dovish comments from ECB officials contrasted with US Federal Reserve's surprise hawkish turn. Investors turned to the US dollar ahead of Friday's US jobs numbers, which could affect the Federal Reserve's policy stance. Data for US private payrolls released on Wednesday showed a larger than expected increase in employment in June. Meanwhile, economic data for the Eurozone showed factory activity growth hit a new record in June and the unemployment rate dropped to a year low in May, adding to signs of a solid economic recovery. Investors also worried about the spread of the Delta variant that has prompted some countries such as the UK and parts of Europe to undertake or plan renewed lockdowns. In June, the euro lost 3.1% against the greenback.
Published on 2021-07-01

Euro Hits 12-Week Low
The euro hit a 12-month low of 1.185 against the greenback at the end of June, heading for a 2.8% monthly loss, following US Federal Reserve's surprise hawkish turn. Meanwhile, hopes of a solid economic recovery in Europe due to ongoing re-opening efforts and a rapid pace of vaccination helped to put a floor under prices. Last week, ECB President Christine Lagarde said that brighter prospects for global demand and a faster-than-anticipated increase in consumer spending could result in a robust economic recovery. On the political front, investors digested France's regional elections results. Although there were signs of relief as the country's far-right failed to win a single region, a poor showing for the party of President Emmanuel Macron added to some uncertainty regarding the presidential outcome in 2022.
Published on 2021-06-30

Euro Set to Book Near 3% Monthly Loss
The euro held around the $1.19 mark at the end of June, heading for a 2.8% monthly loss against the greenback following US Federal Reserve's surprise hawkish turn. Meanwhile, hopes of a solid economic recovery in Europe due to ongoing re-opening efforts and a rapid pace of vaccination helped to provide some support. Last week, ECB President Christine Lagarde said that brighter prospects for global demand and a faster-than-anticipated increase in consumer spending could result in a stronger economic recovery; while rising US consumer prices would have only a limited impact in the Euro Area and that a tightening of wider financing conditions would be premature. On the political front, investors digested France's regional elections results. Although there were signs of relief as the country's far right failed to win a single region, a poor showing for the party of President Emmanuel Macron added to some uncertainty regarding the presidential outcome in 2022.
Published on 2021-06-28

Euro Holds Above $1.19
The euro held above the $1.19 mark, recovering from a near two-month low of $1.185 hit on Monday, amid hopes of a solid economic recovery in Europe. Economic data released this week showed the Eurozone private sector activity expanded in June by the most in 15 years, helped by the latest re-opening efforts and a rapid pace of vaccination, with prices charged for goods and services rising at an unprecedented rate. Also, Germany's consumer and business morale came in stronger than expected as Europe's largest economy picks up pace. Meanwhile, ECB President Christine Lagarde said on Monday that brighter prospects for global demand and a faster-than-anticipated increase in consumer spending could result in a stronger economic recovery; while rising US consumer prices would have only a limited impact in the Euro Area and that a tightening of wider financing conditions would be premature.
Published on 2021-06-24

Euro Hovers Around $1.19
The euro traded around the $1.19 mark, after touching on Monday a near two-month low of $1.185, amid hopes of a solid economic recovery in Europe and a stronger dollar due to expectations of a a sooner-than-expected increase in US interest rates. ECB President Christine Lagarde told the European Parliament on Monday that brighter prospects for global demand and a faster-than-anticipated increase in consumer spending could result in a stronger economic recovery. Lagarde also said that rising US consumer prices would have only a limited impact in the Euro Area and that a tightening of wider financing conditions would be premature and would pose a risk to the ongoing economic recovery and the outlook for inflation.
Published on 2021-06-22

Euro Recovers from 2-Month Low
The euro rose above $1.19 Monday, rebounding from a near two-month low hit earlier in the session, supported by renewed hopes of a solid economic recovery in Europe. ECB President Christine Lagarde told the European Parliament that brighter prospects for global demand and a faster-than-anticipated increase in consumer spending could result in a stronger economic recovery, and that it was not yet time to allow interest rates to rise. Lagarde also warned that a tightening of wider financing conditions would be premature and would pose a risk to the ongoing economic recovery and the outlook for inflation.
Published on 2021-06-21