Euro (EUR) Exchange Rate Weekly Roundup and Currency Forecast 25/11

The Euro put in a bit of a patchy performance last week, beginning the five days softer against its main rivals as deflation fears and flagging Eurozone growth limited the common currency’s appeal.

The Pound to  Euro Exchange Rate is currently trading in the region of 1.1981 as of 12:15 GMT

The Euro was also feeling the pressure as Germany’s attempts to form a workable coalition government plodded on. But before the week came to a close the Euro enjoyed a rebound against the Pound and US Dollar.

The common currency was mainly supported by surprisingly upbeat German business confidence reports.

The GBP/EUR Exchange Rate hit a low of 1.1934

However, the Euro weakened today as a European Central Bank official intimated that the financial body is prepared to cut interest rates further.

Although ECB President Mario Draghi attempted to reign in negative interest rate concerns last week, Governing Council member Ardo Hansson asserted that the ECB is prepared to take this course of action.

During an interview Hansson commented; ‘The options on rate cuts are still not fully exhausted and there are all kinds of other measures that are still on the table. Of course, every time you use one option, you have one less to use. But I don’t see us, by any means, running out of our toolkit of things we can draw on […] We are technically ready [to use negative rates]. We’ve had a tradition of using those 25 basis points so I’d have to look at some analysis of different options. Theoretically, a smaller cut wouldn’t be off the table. Certainly, the bigger the move, the more impact you have.’

The Euro broadly softened in response to these remarks, although losses against the Pound were limited as the British currency was knocked by disappointing domestic mortgage approvals data.

In a comparatively light news day further Euro movement may be limited, but major volatility can be expected later in the week.

Current Euro (EUR) Exchange Rates                                                       

€ Euro	$ US Dollar	1.3516
€ Euro	£ Pound Sterling	0.8346
€ Euro	Australian Dollar	1.4751
€ Euro	$ New Zealand Dollar	1.6470
$ US Dollar	€ Euro	0.7402
£ Pound Sterling	€ Euro	1.1981
$ Australian Dollar	€ Euro	0.6770
$ New Zealand Dollar	€ Euro	0.6079

(Correct as of 12:15 GMT)

Key events for the week ahead