What does 2013 hold in store for the euro?
With a turbulent year behind it, the euro looks stronger now than at any point in the last 12 months. So what will 2013 mean for the common currency?
With a turbulent year behind it, the euro looks stronger now than at any point in the last 12 months. So what will 2013 mean for the common currency?
It’s been one of those weeks in which the gap between the world of foreign exchange, filled with shifting economic trends and global data, and the real world, which rarely changes, has seemed especially large.
The UK pound reversed a four-month decline against the euro this week, taking sterling back to a level we last saw in early October.
The euro lost out against the pound and US dollar for the first time since mid-July this week, as faltering economic conditions point to recession in the eurozone.
The euro gained two cents against the US dollar, reaching 1.23, this week, as ECB president Mario Draghi promises to pull out all the stops to save the euro. But how will he back up his determined rhetoric?
The reversal in the euro can be attributed squarely to the European Central Bank, after the bank’s president, Mario Draghi, cut Europe’s benchmark interest rate -0.25% to just 0.75%, a record low for the ECB.
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