The Euro has strengthened for the first time in three days against the US Dollar and made gains against Sterling after the European Central Bank’s pledge to provide liquidity to Cyprus will give the struggling island nation more time to renegotiate a bailout package.
The single currency also snapped a seven-day fall against the Swiss Franc as the Bank reaffirmed its commitment to offer Cyprus funding.
“The ECB statement that they are going to provide more liquidity means there is some time for renegotiation for Cyprus, so that’s a positive,” said a senior foreign- exchange strategist at Commerzbank AG in Frankfurt. “As long as there is still some room for further negotiations, the market is relatively relaxed. If there is more and more impression that there won’t be a solution, then there may be more weakness in the Euro.”
If no solution is found to the bailout crisis then the Euro could fall to $1.25 against the US Dollar. A level the currency has not traded at since last August when the Greek elections and Euro crisis were dominating the headlines.
The next important piece of economic data that Euro traders should be aware of is this afternoon’s release of the latest Eurozone consumer confidence data. Economists are expecting the figures to show a slight improvement, predicting the figure to have risen to -23.2 from the previous month’s level of -23.6.
Current Euro Exchange Rates
As of 11:20 am
The Euro to Pound Sterling exchange rate is currently trading in the region of 0.8537
The Euro to US Dollar exchange rate is currently trading in the region of 1.2913
The Euro to Australian Dollar exchange rate is currently trading in the region of 1.2429
The Euro to New Zealand Dollar exchange rate is currently trading in the region of 1.5696
The Euro to Canadian Dollar exchange rate is currently trading in the region of 1.3236
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