The euro extended its decline for the second day during the Friday’s trading session following Thursday’s policy meeting of the European Central Bank. The currency still managed to beat the very soft Japanese yen but fell against other most-traded rivals.
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 euro experienced volatile movements against the US dollar on Thursday as investor read into the European Central Bank’s policy announcement earlier today. During its latest policy meeting, the central bank decided to extend the period for which its bond purchase program will last.
The euro fell sharply after the Italian referendum resulted in rejection of proposed reforms and resignation of the country’s leader. Yet the currency bounced even more sharply after markets digested the news.
The euro was mixed today, rising against the Great Britain pound and the Swiss franc, but falling against other most-traded currencies, even losing its earlier gains versus the US dollar.
The euro is set to continue its strike of losses against the US dollar on Friday, which would mark its 10th day of declines. The shared currency lost all its momentum against the greenback as Donald Trump’s win in the presidential election was followed by a stream of positive data in the USA, at a time when the Eurozone economy remained relatively fragile.
Yet again positive macroeconomic data from the eurozone provided limited support to the euro. The German business climate showed unexpected signs of improvement, yet the euro was mixed during the current trading session.
The euro attempted to rise after Markit released a bunch of macroeconomic reports from the eurozone, but the rally was limited. In fact, the shared 19-nation currency even fell against some of its most-traded counterparts.
One of the most important events this week was the monetary policy decision from the European Central Bank. While the ECB did not change its policy, the accompanying statement was dovish enough to send the euro crashing down against most other major currencies.
EUR/USD closed on Friday at 1.0964, down about 2% on a weekly basis from 1.1196 at beginning of the week. There has been a downside pressure all week and a strong ZEW Economic Sentiment Index of 12.3 on Tuesday, with a 3-month continuous improvement, did not have any significant impact or short-term rally. It is important to note that a higher ZEW Economic sentiment shows positive expectations for the eurozone economy. On Friday, important […]