The common currency lost almost two cents against the pound last week, falling from 0.8691 on February 1st to 0.8541 today. Meanwhile, against the greenback it lost two and a half cents, tumbling from a multi-year high of 1.3662 to 1.3410 at the time of writing. Of course, these losses hardly undo the euro’s January gains. The common currency still sits close to historical highs against sterling and the buck. But what we’ve seen this week is that it’s rally isn’t endless. ECB to “monitor” the euro's strength To account for the euro’s losses this week, we can look to what’s typically been the chief mover of the euro exchange rate in the debt crisis, the European Central Bank. Speaking … [Read more...] about Euro wobbles as ECB hints at intervention to curb its strength
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How high will the euro climb?
Since the start of the year, the common currency has jumped from 1.3031 against the US dollar to 1.3670, a gain of +4.9%. And against the pound sterling, the gains are even more pronounced, rising from 0.8131 on January 1st to 0.8641, or +6.27% higher just a month later. Now, while such rapid rises aren’t unprecedented in my experience, they’re notable, especially given that so very recently the Eurozone was in intensive care. To explain these gains, without a doubt the biggest factor is the turnaround in euro sentiment. In 2012, the talk was of the currency collapsing. Correspondingly, no one wanted to touch it, leading to outflows to relative havens such as the pound and US … [Read more...] about How high will the euro climb?
Mario Draghi: the closest thing the Eurozone has to a leader?
Mario Draghi: the closest thing the Eurozone has to a leader? Who leads the Eurozone? Having “saved” the euro last year, I think that title belongs to Mario Draghi, head of the ECB. This article looks at why that is, and why it’s less than ideal. One of the things for which Henry Kissinger is famous for asking is, “Who do I call, if I want to talk to Europe?” Well, the European Commission may have a President, in the form of José Manuel Barroso, but I doubt that anyone thinks he’s where the power in Europe lies. He’s closer to a glorified bureaucrat. Meanwhile, others might say that Angela Merkel is where power truly lives on the continent. Germany is after all Europe’s biggest … [Read more...] about Mario Draghi: the closest thing the Eurozone has to a leader?
What does 2013 hold in store for the euro?
For my part, I’d say the leaders of the Eurozone have pretty good reason to feel okay about how 2012 has gone. After all, they overcame the biggest challenge facing the currency union, that of doubts about its continued survival, while making big progress on a banking union, and keeping all its members on-board. I don’t think we should under-estimate just what an accomplishment this is. Back in July, when all you could read about were the inevitable Greek exit, Spanish bankruptcy, or wholesale Eurozone collapse, I moved quite a bit of my savings out of my Spanish account (I’m based in Madrid) to the UK, I was that concerned. For us to look at where we stand now and say, well, Greece … [Read more...] about What does 2013 hold in store for the euro?
Euro climbs as Eurozone banking supervisor agreed
Welcome to the Pure FX account of the latest changes in the euro exchange rate, covering the 7th to 14th December 2012. This is intended as a brief guide to movements in the euro this week, to put you in the best position for when you exchange currencies. Down, but not for long? The euro gained against the pound and US dollar this week, reversing all of last week’s losses, as Eurozone leaders agreed a single banking supervisor for the currency zone. This takes the Eurozone a step closer to genuine fiscal union, and has been widely cheered by the financial markets. To be sure though, it hardly means the Eurozone is out of the debt crisis woods, and the agreement masks big … [Read more...] about Euro climbs as Eurozone banking supervisor agreed
Signs of Chinese recovery lift the euro
For instance, if your life is anything like mine, then you’ll probably occupy the same rooms, see the same people, and use the same objects, day in day out. This is neither good or bad, but just how daily life is. It’s pretty constant. But if you were to look at the foreign exchange world this week, you might come away with the impression that the world had completely changed within the span of seven days. To whit, the euro has shot up against the pound and US dollar, gaining more than a cent against them both since last Friday. Now, I know that might not sound too significant, but a cent movement is pretty big. For the euro to move that much in a week, there have to be real changes … [Read more...] about Signs of Chinese recovery lift the euro
Euro gains as Rajoy’s waiting game pays off
Welcome to the Pure FX account of changes in the euro exchange rate, covering the 12th to 19th of October 2012. This is intended as a brief guide to movements in the euro this week, to put you in the best position for when you exchange currencies. Latest exchange rate changes Pound to euro: 1.2398 to 1.2276 Pound to US dollar: 1.6036 to 1.6038 Euro to US dollar: 1.2936 to 1.306 Who would have thought it? The euro continued its slow ascent against the pound and US dollar this week, bouncing back ever since its July nadir of 1.20 against the greenback. This is chiefly as Spanish prime minister Mariano Rajoy’s strategy of simply waiting out the markets pays off, and events turn in … [Read more...] about Euro gains as Rajoy’s waiting game pays off
US dollar triumphs as Eurozone bank recapitalisation agreement unravels
Welcome to the Pure FX account of changes in the euro exchange rate, covering the 5th to 12th of October 2012. This is intended as a brief guide to movements in the euro this week, to put you in the best position for when you exchange currencies. Latest exchange rate changes Pound to euro: 1.2439 to 1.2398 (-0.33%) Pound to US dollar: 1.6181 to 1.6038 (-0.884%) Euro to US dollar: 1.301 to 1.2936 (-0.569%) The US dollar has triumphed against the pound and euro this week, as a Eurozone agreement dating back to June to break the link between indebted banks and governments unravels. If you’re in the US and intend to emigrate to Spain or Portugal then, this means you can receive a … [Read more...] about US dollar triumphs as Eurozone bank recapitalisation agreement unravels
Hope against hope for Spain bailout aids euro
Welcome to my latest account of changes in the euro exchange rate, covering the 28th September to 5th October 2012. This is intended as a brief guide to movements in the euro this week, to put you in the best position for when you exchange currencies. Latest changes in the exchange rate GBPEUR: 1.2577 to 1.2439 (-1.097%) GBPUSD: 1.6267 to 1.6181 (-0.529%) EURUSD: 1.2933 to 1.301 (+0.595%) Back up for the euro then! Following a fortnight in which the common currency fell against its pound and US dollar, its back up again this week, as the markets hope against hope that Spain requests a bailout. Curiously however, this hope flies even in the face of remarks from Spanish prime … [Read more...] about Hope against hope for Spain bailout aids euro
Euro good luck streak ends as Eurozone data points to recession
Welcome to the Pure FX account of the latest changes in the euro exchange rate, covering the 14th to 21st September 2012. This is intended as a brief guide to movements in the euro this week, to put you in the best position when you exchange currencies. Exchange rate changes GBPEUR: 1.2415 to 1.2511 (+0.773%) GBPUSD: 1.6198 to 1.6252 (+0.333%) EURUSD: 1.3048 to 1.2987 (-0.468%) So the euro’s run of good luck comes to an end! The common currency 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, and Spain keeps the markets guessing about whether it intends to tap the European … [Read more...] about Euro good luck streak ends as Eurozone data points to recession