Currency market remained resilient to any flows of fundamental data on Thursday, with focus being on the next week already due to Easter holidays.
Currency market remained resilient to any flows of fundamental data on Thursday, with focus being on the next week already due to Easter holidays.
Plunging oil prices, that have lost value after a depressing US weekly reserves report, used to have a negative direct impact on all commodity-dependent currencies.
The Pound Sterling took the biggest hit against the Euro and other currencies on Tuesday. An immediate negative reaction, which totaled 0.92% versus EUR, was a result of increased Brexit worries in the aftermath of attacks in Brussels.
Monday's trading session was largely quiet, with only Euro zone's current account published throughout the whole day.
Commodity prices have decreased gradually on Friday, but even a small change there put some downside pressure on Kiwi and Aussie that were the only currencies to lose value against the Euro.
The only currency, against which the Euro continued to appreciate substantially, was the US Dollar. It seems that market participants have now fully priced in the dovish statement made by the central bank in the world's largest economy.
Unsurprisingly, the most significant increase in the value of the 19-nation European currency has been registered against the Greenback on Wednesday.
The Euro was driven mainly by fundamentals from other countries yesterday. EUR/NZD surged the most by 1.18% on the back of disappointing dairy prices' numbers from New Zealand that posted a drop of 2.9% in the first part of March 2016, compared to the preceding two weeks.
New Zealand Dollar tumbled across the board on Monday by falling versus the Greenback and the Euro. Expectations are growing that the Federal Reserve is going to raise interest rates ultimately by the end of this year and at least once.
The Euro eased from peaks it had reached back on March 10 when the ECB President Mario Draghi said the central bank seems to be done with interest rate decreases for now.
Decisions taken by the European Central Bank on Thursday have probably confused nobody but traders in the FX market.
The Reserve Bank of New Zealand made an unexpected decision to cut the benchmark interest rate by 25 basis points to 2.25% at its meeting yesterday.
The Euro was considerably down only against its Japanese peer on Tuesday, as EUR/JPY dropped by 0.75% and was driven by safe-haven needs on the back of sluggish trade balance data from China.
The Euro's best-performing currency pair was the one against the Kiwi on Monday, as it added 0.32%. Manufacturing sales in New Zealand dropped in the last quarter of 2015 after an advance that had been booked a quarter before.
Friday brought us a very limited set of economic data; however, all available statistics was important enough in order to move markets throughout the last day of the previous week.
The Euro recovered the most against the Japanese Yen on Thursday by 1%, as rising appetite with respect to risk is decreasing inflow of funds into the world's main safe-haven currency.
Rising risk appetite, climbing stock and commodity markets forced the Euro to continue losing value in the middle of this week.
The only currency against which the Euro posted a confident climb on Tuesday was the Japanese Yen.
Data from the Euro zone has considerably missed market expectations on Monday, as inflation in the common currency area slumped back into the negative territory of -0.2% in February.
The US Dollar experienced an inflow of funds on Friday on the back of very optimistic fundamentals across the board. The world's largest economy added 1% in the last three months of 2015, according to the preliminary (second) estimate.
The common currency showed mixed performance yesterday, as it outperformed the safe havens, but was left behind by the riskier currencies.
The currencies except for the Sterling and Canadian Dollar by and large stayed unchanged.
Despite weak Euro Area fundamentals, the single currency outperformed four out of seven its major counterparts.