The Euro has strengthened to its highest level in four weeks against the US Dollar as speculation mounts that European Central Bank President Mario Draghi will reassure investors that the region’s economy will recover later in the year.
The single currency advanced against the majority of its most traded peers as economists predict that the ECB will refrain from from cutting its main refinancing rate its monthly meeting.
“We’re expecting no change in terms of ECB rates,” said Steven Barrow head of Group-of-10 research at Standard Bank Plc in London. “If we do see a rate cut from the ECB, then the Euro will go down but if they publish concrete plans for some other stimulus measures, then the market will take that positively and it could go higher.”
The Euro to US Dollar Exchange Rate is currently in the region of: 1.3121
Despite signs of further weakening in currency bloc and news that unemployment increased yet again in France to its highest level since 1998 as well as Finland sliding into recession the ECB is expected to maintain interest rates at the record low level of 0.5%.
President Francois Hollande’s promise to cut the nation’s unemployment rate by the end of the ear is looking ever more unlikely as France and the wider Eurozone continues to contract. Some economists are warning that the situation is set to get a whole lot worse, with the peak in the rise of unemployment due next year. France is in recession after its economy contracted by 0.2% in the first quarter of 2013.
“We are looking for unchanged policy stance,” said Valentin Marinov head of European Group-of-10 currency strategies at Citigroup Inc. in London. “The outcome should corroborate the view that no significant change in policy outlook is imminent. This could keep sterling supported for the time being.”
Current Euro (EUR) Exchange Rates
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3121 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8494
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6484 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7620 >
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1771>
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7235 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6066 <
(Correct as of 11:25 am GMT)
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