News

Euro Gains as Investors Brace for EU, ECB Meetings
The euro gained 0.6% to trade at $1.137 on Monday as risk appetite increased ahead of earnings season. Also, EU leaders are set to meet in Brussels later this week to discuss a common recovery plan to respond to the COVID-19 crisis and a new long-term EU budget. Traders also eye an ECB meeting on Thursday with policymakers seen leaving interest rates and the bond purchase programme at current levels, a week after President Christine Lagarde signaled the central bank may keep monetary policy unchanged for some time.
Published on 2020-07-13

Euro Trades Below $1.13
The euro was little changed below $1.13 on Friday, having touched a one-month high of $1.137 in the previous session, after the Irish finance minister Paschal Donoghoe was elected as the new president of the Eurogroup, defeating candidates from Germany and France. EU leaders will meet in Brussels next week to discuss the recovery plan from the COVID-19 crisis and a new long-term EU budget. On the monetary policy front, while ECB President Christine Lagarde signaled the central bank may keep monetary policy unchanged for some time, while Bloomberg survey predicted an increase in the ECB’s €1.35 trillion pandemic purchase program by December, with most expecting an extension and a top-up of €500 billion. Earlier in the week, the European Commission downgraded its economic forecasts for the region to show a deeper 8.7% contraction in 2020.
Published on 2020-07-10

Euro Weakens in Afternoon Trading
The euro depreciated towards $1.13 in afternoon trading on Thursday, having touched a one-month high of $1.137 earlier in the session, as demand for the dollar increased amid growing concerns about a second wave of infections and its impact on reopening efforts. Meanwhile, worries about a Brexit trade deal mounted after EU chief negotiator Michel Barnier said that there were still “significant divergences” between the EU and the UK, following three days of talks with his counterpart David Frost. On the monetary policy front, ECB President Christine Lagarde signaled on Wednesday the central bank may keep monetary policy unchanged for some time.
Published on 2020-07-09

Euro Briefly Touches 1-Month High
The euro was little-changed at $1.133 on Thursday, having touched a one-month high of $1.137 earlier in the session, as investors turned to riskier currencies despite growing concerns about a second wave of infections. Meanwhile, investors await an Eurogroup meeting today, at which Eurozone finance ministers are set to elect their new president, and discuss the budgetary situation and fiscal stance in the bloc, amid the pandemic. On Wednesday, ECB President Christine Lagarde signaled the central bank may keep monetary policy unchanged for some time.
Published on 2020-07-09

Euro Hits 4-week High
EURUSD increased to a 4-week high of 1.1361
Published on 2020-07-09

Euro Appreciates Above $1.13
The euro crossed the $1.13 level on Wednesday afternoon, after the European Commission approved German plans to set up a fund with a budget of up to €500 billion to provide liquidity and capital support to German companies affected by the outbreak. At the same time, investors turned to riskier assets on recovery hopes. On Tuesday, the European Commission lowered its GDP forecasts for Europe, saying that the lifting of COVID-19 lockdown measures in some countries was proceeding less swiftly than it had initially predicted.
Published on 2020-07-08

Euro Hovers Around $1.128 on Wednesday
The euro was little-changed at to $1.128 on Wednesday, a day after the European Commission lowered its GDP forecasts for 2020 and 2021, saying that the lifting of COVID-19 lockdown measures in some countries was proceeding less swiftly than it had initially predicted. Meanwhile, the Commission has approved German plans to set up a fund with a budget of up to €500 billion to provide liquidity and capital support to German companies affected by the outbreak. At the same time, a surge in coronavirus cases supported demand for the dollar.
Published on 2020-07-08

Euro Weakens as Europe Cuts Growth Forecasts Again
The euro depreciated to $1.127 on Tuesday after the European Commission lowered its GDP forecasts for 2020 and 2021, with the Eurozone economy seen contracting by a deeper 8.7% this year, before rebounding by a weaker 6.1% in 2021. Among the bloc's largest economies, Italy, Spain and France should all shrink more than 10%, while Germany's GDP will probably drop by 6.3%. In addition, latest data showed Germany's industrial production rebounded less than forecast in May. At the same time, a surge in coronavirus cases supported demand for the dollar.
Published on 2020-07-07

Euro Appreciates on Recovery Hopes
The euro crossed the $1.13 on Monday as investors turned to riskier currencies on hopes of a quicker economic recovery and a potential vaccine to prevent COVID-19. Eurozone retail sales rebounded at a record 17.8% in May, beating market forecasts of 15%, as governments across the region reopened their economies. Meanwhile, German factory orders climbed 10.4%, the most on record, but less than an expected 15% surge.
Published on 2020-07-06

Euro Little-Changed in Thin Trading
The euro was little-changed at $1.12 on Friday, after touching the $1.13 level for the first time in a week the day before as demand for riskier currencies was boosted by a strong US jobs report, alongside better-than-expected PMI surveys from the world's largest economies and upbeat results from a potential coronavirus vaccine. Meanwhile, investors await news about a common recovery plan set to be discussed at an EU summit as soon as July, as well as an update on Brexit negotiations.
Published on 2020-07-03

Euro Touches $1.13 for 1st Time in a Week
The euro touched $1.13 for the first time in a week on Thursday as upbeat results from a potential coronavirus vaccine and better-than-expected PMI surveys from the world's largest economies boosted demand for riskier currencies. Meanwhile, investors await news about a common recovery plan that is set to be discussed at an EU summit as soon as July, as well as an update on Brexit negotiations.
Published on 2020-07-02

Euro Appreciates After a Flat Start
The euro strengthened to $1.127 on Wednesday afternoon after data showed the Eurozone manufacturing sector contracted less than initially thought in June as several countries in the region reopened their economies, while German registered unemployment rose less than expected last month. At the same time, stronger than expected factory activity data from the US boosted demand for riskier currencies. Investors await any new developments about a EU recovery plan to be discussed as soon as July, while remained concerned about a spike in coronavirus cases. On Tuesday, the European Union announced an initial "safe list" of countries from which the bloc will allow non-essential travel, excluding the United States as the number of infections continue to increase at record rates.
Published on 2020-07-01

Euro Little-Changed on Wednesday
The euro was little-changed at $1.12 on Wednesday after data showed the Eurozone manufacturing sector contracted less than initially thought in June as several countries in the region reopened their economies, while German registered unemployment rose by just 69 thousand, while markets had forecast a bigger 120 thousand increase. Meanwhile, investors await any new developments about a EU recovery plan to be discussed as soon as July, while remained concerned about a spike in coronavirus cases. On Tuesday, the European Union announced an initial "safe list" of countries from which the bloc will allow non-essential travel, excluding the United States as the number of infections continue to increase at record rates.
Published on 2020-07-01

Euro Weakens on Tuesday
The euro depreciated below $1.12 on Tuesday after Germany's Chamber of Industry and Commerce (DIHK) said that Europe's largest economy should contract by 10% this year and that a V-shaped recovery was unlikely, with half of the companies expeting to return to normalcy in 2021 at earliest. At the same time, renewed concerns about a spike in COVID-19 cases sent investors to the dollar. On Monday, French President Emmanuel Macron and German Chancellor Angela Merkel discussed the planned EU recovery fund, a week after the French president and his Dutch counterpart Mark Rutte agreed on major differences over the plan that is set to be presented at an EU summit in July.
Published on 2020-06-30

Euro Rises Further on German Inflation Data
The euro extended gains to trade at $1.128 in afternoon trading on Monday after German inflation data came in stronger than expected in June. Meanwhile, French President Emmanuel Macron and German Chancellor Angela Merkel will meet later in the day to discuss the planned EU recovery fund, alongside the coronavirus crisis, environmental issues and other international affairs. Last week, the French president and his Dutch counterpart Mark Rutte were able to agree on major differences over the plan that is set to be discussed at an EU summit in July.
Published on 2020-06-29

Euro Appreciates as France, Germany Discuss EU Recovery Plan
The euro rose 0.4% to $1.127 on Monday as French President Emmanuel Macron and German Chancellor Angela Merkel will meet later in the day to discuss the planned EU recovery fund, alongside the coronavirus crisis, environmental issues and other international affairs. Last week, the French president and his Dutch counterpart Mark Rutte were able to agree on major differences over the plan that is set to be discussed at an EU summit in July. On the economic data front, the Eurozone economic sentiment came in weaker than expected in June, while investors await German inflation figures.
Published on 2020-06-29

Euro Depreciates on Friday
The euro weakened below $1.12 on Friday, as investors feared that a second wave of infections could lead to fresh lockdown measures while disappointing US personal spending numbers boosted dollar demand. Meanwhile, European Central Bank President Christine Lagarde said earlier in the session that the Eurozone was "probably past" the worst of the economic crisis caused by the pandemic, but warned of a possible severe second wave. On Thursday, the ECB launched a new facility that will provide euro liquidity to a broad set of central banks outside the euro area until June 2021; while minutes from the June meeting signaled that its stimulus policies will be kept in place until the pandemic shock to the inflation path subsides.
Published on 2020-06-26

Euro Little-Changed on Friday
The euro hovered around $1.122 on Friday, as investors weighed hopes of a quick economic recovery and the latest stimulus measures by the ECB against a second wave of infections. European Central Bank President Christine Lagarde said that the Eurozone was "probably past" the worst of the economic crisis caused by the pandemic, but warned of a possible severe second wave. On Thursday, the ECB launched a new facility that will provide euro liquidity to a broad set of central banks outside the euro area until June 2021; while minutes from the June meeting signaled that its stimulus policies will be kept in place until the pandemic shock to the inflation path subsides.
Published on 2020-06-26

Euro Weakens on ECB New Eurosystem Repo Facility
The euro traded 0.2% lower against the US dollar at $1.1229 on Thursday after the ECB announced it was launching a new backstop facility to provide precautionary euro repo lines to central banks outside the euro area in response to the coronavirus crisis. At the same time, expectations of a relatively quick economic rebound faded after ECB chief economist Philip Lane warned on Wednesday that activity in the Eurozone would remain far below pre-crisis levels for an extended period of time as the bloc recovers from its deepest economic crisis ever. Also, concerns about a second wave of coronavirus infections mounted, sending investors to safe havens.
Published on 2020-06-25

Euro Depreciates on Wednesday
The euro weakened 0.2% against the dollar to trade around $1.129 on Wednesday, having touched $1.132 in the Asia session, after European Central Bank chief economist Philip Lane warned that activity in the Eurozone would remain far below pre-crisis levels for an extended period of time as the bloc recovers from its deepest economic crisis ever. Lane's comments cooled expectations of a relatively quick economic rebound even as unexpectedly strong PMI and Ifo numbers for June had provided some relief. At the same time, concerns about a second wave of coronavirus infections mounted, sending investors to safe havens. Still, the euro is headed for its best month against the dollar since October.
Published on 2020-06-24