It was a so-so week for the euro. The single currency was steady against the US and Canadian dollars and, of course, the Swiss franc. It picked up half a cent against the British pound and two thirds of an Australian cent: both of those currencies had to contend with unsatisfactory economic data. The finalised euro zone purchasing managers' index readings were alright but they failed to match up to the promise of the provisional figures a week earlier.
Despite the unfolding drama in Ukraine and Gaza it was another relatively uneventful week in the foreign exchange market. The losers were the Canadian and New Zealand dollars, both of which suffered as expectations of interest rate increases were marked down.
Last month French mortgage interest rates have reduced once more and have reached an historic low level. A few hours ago, as analysts were expecting, the European Central Bank (ECB) has made their monthly decision on interest rates and given the comments that were made by Mario Draghi (The ECB president) to stimulate the Eurozone economy further.
A poor performance by the British pound made the euro look good but it was not really such a successful week for the single currency. It lost half a cent to the US dollar and was down by almost two cents against the Australian dollar.
After the first quarter of 2014, the Euro is still in good health.
Since the beginning of 2014, the Euro zone has been enjoying an increasingly favourable economic position; inflation is currently relatively weak and the risk of deflation is still controlled by European economies through the European Central Bank (ECB).
Do not delay – invest in France today!
The most interesting currencies in the last few weeks, if only from a theoretical point of view for most investors, have been the Ukranian hryvnia and the Russian ruble.
February 5th, 2014 | Permanent link
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