The 18-block nation single currency was seen trading in red against the US dollar on Friday, after the Eurozone’s largest economy, Germany; posted its ifo business climate figures. Read more
The EUR/USD rose to a two-week high on June 6.
Central bank policy key to currency values
Market participants cited several factors that could have fueled the gain in the currency pair, including recent updates on European Central Bank stimulus plans and robust U.S. data that could make the Federal Reserve less likely to slow down its current tapering, Reuters reported. Read more
The EUR/USD dropped to its lowest value in three months on Friday, May 23 as those who trade forex responded to a lackluster report about German business confidence.
The common currency reached $1.3614, according to Reuters. Later in the session, the euro recovered relative to the dollar, reaching $1.3630. Investors who harness technical analysis might want to know that the EUR/USD declined below its 200-day moving average of $1.3636. Read more
The 18-nation currency traded slightly lower on Tuesday, after reports showed that the eurozone’s number one economy worsened for the fourth consecutive month, as tensions from Ukraine and the stronger greenback continue to weigh on the euro.
Germany’s ZEW Index, which shows the investor sentiment for the next six months, worsened for the fourth month in a row to 43.2 in April, dropping from the previous figure of 46.6 points seen in March. The current situation index climbed to 59.5 points, compared to 51.3 seen in the previous month. Read more
The 18-nation currency weakened against most of its 16 major peers on Monday, clearing previous gains after the European Central Bank (ECB) president Mario Draghi intervened against the euro over the weekend.
“Mario Draghi said, and he’s said it before, the currency does come into their views on monetary policy, it does naturally act as a handbrake on inflation,” said Chris Weston, the chief market strategist at IG Ltd. In Melbourne. “He’s basically trying to defend the $1.39 level. Above $1.39 you’re getting to the top of the longer-term range,” Weston added. Read more