The Euro hovered in a mixed environment on Monday of this week, but the overall EUR Index was aggregately unchanged. Three components, which include all commodity-linked currencies, felt heavy downside pressure yesterday.
The European currency benefited from heavy losses suffered by commodity-related currencies on Friday, which were caused by the steep oil price decline. EUR/AUD skyrocketed a mere 1.7% and EUR/CAD followed with a rally of 1.4%. Also, the Euro/Kiwi cross closed the session with a surge of more than one full percentage point.
The Euro has given up some earlier gains we had observed back on Wednesday. Yesterday the 19-nation currency depreciated against all of its main counterparts, posting the sharpest drop versus the Aussie and Kiwi. Both South Pacific currencies had their own personal reasons for the appreciation.
EUR/USD advanced the most by 1.22% during the trading session on Wednesday, even despite the lack of any fundamental drivers throughout the session both from the Euro area and US. Germany's trade balance deteriorated in October, but the Euro's spike confirms that this data used to have little impact on the overall state of affairs.
The small number of important fundamentals from Europe and important data from other countries used to have an overall positive impact on the Euro in the past 24 hours. The common currency jumped by more than one full percentage point against Australian and Canadian dollars, which were hit by a continuous slump of oil prices.
While the aggregate market was little volatile on Monday, several currencies reflected important developments in other fundamental factors and managed to register much sharper daily changes.
The Euro corrected lower across the board last Friday, following major gains that the 19-nation currency had made earlier on Thursday of the previous week.
In the vast majority of all cases, yesterday the Euro had its best trading session since 2009. The single currency surged against all G10 currencies, following decisions taken by the European Central Bank. EUR/CAD and EUR/USD skyrocketed by more than 3% in the past 24 hours, as the ECB President Mario Draghi unveiled somewhat less stimulus than it was initially
The Euro traded in a mixed environment against its peers on Wednesday, while we are awaiting the European Central Bank's meeting on Thursday. EUR/GBP and EUR/NZD were the day's leaders, as they rallied by 0.7% and 0.4%, respectively.
Australian and New Zealand dollars were the best performers for the second consecutive day on Tuesday of this week. EUR/AUD slipped by 0.7% amid the Reserve Bank of Australia's decision to keep interest rates unchanged at 2.00%. The RBA previously noted that additional rate cuts are unlikely in the nearest future, and these comments strengthened the Aussie's advance versus the
The common European currency fell under heavy selling pressure on Monday of this week, as markets are setting eyes on the European Central Bank's meeting this Thursday. The regulator is expected to make several high-impact monetary policy decisions. According to the majority of economists, a further cut to the deposit rate, extension/expansion of the present QE and possibility of new
The Euro advanced in value on Friday, ignoring dovish expectations over the ECB meeting which is due to take place this Thursday. Only the EUR/USD currency pair failed to rally as it eventually dipped by 0.16% on the back of hawkish Fed expectations.
Movements of various Euro-crosses were very silent on Thursday as markets felt lack of volatility due to the Thanksgiving Holiday in the US. The EUR/USD currency pair was itself down by only 13 basis points yesterday, but there was no fundamental background for even such a small move.
The Euro was depreciating against all but one G8 currency on Wednesday on the back of expectations that the European Central Bank will expand QE programme in December. Moreover, fundamentals from other countries weighed on valuation of the 19-nation currency yesterday. Only EUR/CHF rose by 0.3% amid broad gains for the USD/CHF cross, which tried to assess the monetary policy
Australian and New Zealand dollars rallied against the Euro on Tuesday, following their substantial losses one session before. EUR/AUD and EUR/NZD were down by 0.8% and 0.5%, respectively, on the back of increasing oil prices. EUR/CAD followed with a drop of 0.4%
Concerns over global demand and rising US Dollar were negatively reflected in the pricing of commodity-linked currencies on Tuesday. EUR/AUD and EUR/NZD were the largest nominal gainers as they both added around 0.6%.
The Euro was trading down across the board on Friday, with losses ranging from 0.15% against the British Pound, up to 1.44% versus the Australian Dollar. The South Pacific currency has fully recovered on a weekly basis as risk-off sentiment faded and confidence returned to the commodity currency.
Even though the Fed has literally confirmed that interest rates are likely to start rising next month, the pace of policy normalization will be slow and gradual. These projections pushed the US Dollar, which seems to have already priced in the rate hike, down by 0.7% against the Euro.
The Euro skyrocketed the most versus the Swiss Franc on Wednesday, even though this currency pair usually is barely turbulent. EUR/CHF surged by 0.7% on the back of very disappointing ZEW economic conditions' survey for Switzerland. This indicator dropped down to zero in October from 18.3 points a month before. It proclaims that institutional investors and analysts are now neither
Risk-averse sentiment and expectations over more ECB stimulus in December are pushing odds against the common European currency. Yesterday it slid against all but one G8 currency, by adding 0.08% only against the Swiss Franc. Japanese Yen and US Dollar, two classical safe-haven currencies, are building ground as they advanced by 0.2% and 0.4% versus the Euro, respectively.
The Euro continued to slump against G8 currencies on Monday, the first trading day of this week. Paris terrorist attacks made the Euro area's medium term economic outlook even more uncertain, which led to market sell-off of the single currency yesterday.
Lower than estimated pace of economic growth in the Euro zone resulted in a decline of the Euro against the vast majority of other G8 currencies last Friday. Euro/Swissie was the only cross to rally by around 0.2%, even though Switzerland's data showed no signs of weakness as producer price index rose more than forecasted in October by 0.2% on
The Euro surged against all G8 currencies but the Australian Dollar on Thursday, because the latter used to have its own reasons for strong growth. Employment growth in Australia was around four times higher than had been anticipated in October as country's economy added 58,600 jobs versus an estimate of just 14,800.
British Pound has continued to strengthen versus the Euro on Wednesday, being that EUR/GBP cross lost 0.45% on day-to-day basis. Yesterday's bullish move of the Sterling was justified by core fundamental background. UK jobless rate dropped to 5.3% in September, while wages continued to rally by 3% for the same month.