The EUR/USD currency pair rallied briefly earlier today after the release of the Eurozone’s current account balance, which recorded a minimal surplus, by the European Central Bank. The euro was stronger even as the US dollar came under renewed selling pressure during the early North American session.
Global reserve currency
Currency of international trade
Main objective of the European Central Bank is price stability
Factors of Weakness
Fiscal troubles of the member-countries
The euro is the currency used by institutions of the European Union and 17 of 27 nations of the Union, which is collectively called the eurozone. The currency is also often used in some other countries, including those that are situated near the borders of the eurozone. The currency was officially adopted in 1995, introduced in financial markets in 1999, while coins and banknotes were released in 2001. It is the second popular reserve currency after the US dollar.
Euro News Archive
The EUR/USD today established a bearish trend that was triggered by the release of the ZEW economic sentiment survey for Germany, which did not meet expectations. The currency pair was also affected by the stronger US dollar backed by the strong US Producer Prices for the month of February released by the Bureau of Labor Statistics.
The EUR/USD currency pair hit a bump in its rally from Friday last week as the US dollar demonstrated weakness after the release of the non-farm payroll report. The upcoming Dutch general election scheduled for Wednesday has heightened the political risk in the Eurozone as Geert Wilders, a far-right politician, is likely to win.
Markets did not expect anything particularly important from this week’s European Central Bank meeting, but it turned out to be perhaps the most important event during the week, making the euro the strongest major currency. Meanwhile, the highly anticipated US nonfarm payrolls turned out to be almost non-event, having negligible impact on markets.
The euro rallied against the US dollar, the British pound, and other major peers on Friday after the European Central Bank signaled that it no longer worries about deflationary pressures. The shared currency reached its highest point against the greenback in almost 2 months in today’s trading.
The euro rallied briefly against its major peers today after Mario Draghi, the President of the European Central Bank, outlined a hawkish outlook during the press briefing after the bank’s meeting. The euro gained significantly as the ECB revised its growth and inflation outlooks for the Eurozone and announced that the quantitative easing program would continue until December.
The EUR/USD currency pair rallied briefly during the early European session despite the announcement by former French premier, Alain Juppe, that he won’t run for president. The currency pair’s rally was also supported by the weaker US dollar, but the greenback later rallied higher.
The EUR/USD currency pair retreated from its bullish run during the European session after the release of the US ISM Non-Manufacturing PMI data, which beat expectations. The currency pair rallied during the European session as the results of an election poll released by polling agency Odoxa indicated that Emmanuel Macron was leading the presidential race in France followed by Marine Le Pen.
The euro fell against the US dollar and the Great Britain pound on Thursday despite seemingly positive macroeconomic data. The euro performed better against various other currencies, including the Japanese yen.
The euro climbed today after concerns about the outcome of the French presidential elections eased while economic data released from Europe during the trading session was decent enough to avoid hurting the currency.