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
euro
To be or not to be: Catalonia as an independent state
There’s nothing especially new about the present dispute between Catalonia and Spain’s national political leadership. Arguably most of the key arguments date back at least to the 1970s and the end of the Franco era, while the seeds of the present dispute are to be found in the country’s written constitution which was finally put together in 1978, when the threat of military interference in political life was still a real and present danger. Indeed the one thing that both sides of the argument seem to agree on is that the regional system of comunidades autónomas which was established back then doesn’t really work. Equally, after so many years of constant wrangling, most citizens on both … [Read more...] about To be or not to be: Catalonia as an independent state
US dollar loses out after ECB unveils its rescue scheme
Welcome to the Pure FX account of the latest changes in the foreign exchange rates. This is intended as a brief guide to movements in the exchange rates this week, to put you in the best position when you exchange currencies. Exchange rate changes GBPEUR: 1.2621 to 1.2601 (-0.158%) GBPUSD: 1.5789 to 1.5939 (+0.95%) EURUSD: 1.2554 to 1.2644 (+0.717%) As you can see above, the US dollar was the biggest loser last week, shedding almost 1.00% against the UK pound and euro. This continues a trend we’ve seen since early August, when the buck started to slide against its counterparts, as expectations that the European Central Bank would act to “preserve the euro” boosted global … [Read more...] about US dollar loses out after ECB unveils its rescue scheme
Exchange rates in holding pattern as markets await central bank action
Welcome to my weekly account of what’s affected the euro exchange rate, covering the 10th to 17th August 2012. This is intended as a brief guide to the latest movements in the euro, to help you plan the best time for you to change currencies. Exchange Rate Changes GBPEUR: 1.2707 to 1.2717. No big change since broke 1.26 about 4-5 weeks ago. GBPUSD: 1.5621 to 1.5712. But fell from 1.62 in May and since then hovering. EURUSD: 1.2289 to 1.2355. Hovering at about this point for about 4-5 weeks. What’s Affected The Rate This Week The exchange rates sit more or less unchanged this week, with the euro moving less than a cent against the pound and US dollar. And in fact, if you look back, … [Read more...] about Exchange rates in holding pattern as markets await central bank action
Euro plunges as Spain cuts deeper
Changes over one week: GBPEUR: 1.254 to 1.267 (+1.037%) - Highest point since October 23, 2008 USDEUR: 0.807 to 0.82 (+1.161) - Highest point since June 18, 2010 Oh, Spain! As you can see above, the euro sits at multi-year lows against both the pound and US dollar this week, giving you a good opportunity if you intend to emigrate to the continent, or snap up some Eurozone goods. Yet the reasons for the euro’s decline could be better. Spanish Prime Minister Mariano Rajoy has announced another €65 billion in spending cuts for the Iberian nation, already widely discredited as the best way to keep Spain in recession. (For instance, Jeremy Warner of telegraph.co.uk notes, “The … [Read more...] about Euro plunges as Spain cuts deeper
ECB interest rate cut sends euro to 2012 low
Welcome to my weekly account of movement in the foreign exchange rates. So just one week has passed, and you might be forgiven for thinking that there was no EU summit at all last Friday. Because today, the yield on Spanish bonds again sits at 7.00%. The pound meanwhile (at 1.2560) is at its highest point against the euro since October 2008. Pessimistic business as usual for Europe then, when just seven days ago the outlook looked much rosier. So what’s happened? This week, the reversal in Europe’s fortunes can be attributed squarely to the European Central Bank. Speaking yesterday, its President Mario Draghi said things that not just implied the future impotence of the ECB to aid the … [Read more...] about ECB interest rate cut sends euro to 2012 low
Euro up as Spain, Italy take a stand
That, at least, is the takeaway from yesterday’s EU summit, in which Spain and Italy won significant concessions to keep themselves solvent, only by telling Germany they would block “everything” unless immediate steps were taken to help them. Does it sound professional? No. But insofar as Mariano Rajoy and Mario Monti were desperate, it probably doesn’t matter. Moreover, the panicked tactics of the Spanish and Italian premiers have provided the breakthrough the markets were looking for. On Friday, the euro climbed 1.00% against the pound and US dollar and, compared to the brief rally that followed Spain announcing its bailout, this one looks set to last. “At last,” the markets are saying, … [Read more...] about Euro up as Spain, Italy take a stand
Spain’s “technically impossible” euro exit
Spanish Prime Minister Mariano Rajoy, his Economy Minister Luis de Guindos, and Finance Minister Cristóbal Montoro, have all been asked to respond to Nobel laureate Paul Krugman’s recent comments regarding what he called eurodämmerung: the end of the single currency. Unsurprisingly, they all repeated their commitment to the single currency, saying that Spain would not require a bailout, and that the spending cuts would continue. But like guilty men giving away what is really on their minds, all three went further, insisting that Spain would remain in the eurozone, and that a corralito was a “technical impossibility.” Corralito is a dreaded word in Spain, associated with the chaos that … [Read more...] about Spain’s “technically impossible” euro exit
Pound to euro hits 1.25 as Spain nationalises Bankia
Here is my latest update of the British pound to euro exchange rate, covering the 4th to 11th May 2012. This is intended as a brief guide to what’s affected the exchange rate this past week as well as what might happen next, to help you decide if now’s the best time for you to change currencies. Pound to euro: +1.609% weekly increase 1.2504 (1.2306 a week ago) +2.094 monthly increase 1.2505 (1.2129 a month ago) This week: 1. The pound hit its highest rate against the euro since 2008, as well as breaking the hugely symbolic 1.25 point, as Spain’s nationalisation of Bankia as well as electoral chaos in Greece pull the euro down. 2. The Bank of England didn’t announce a fourth … [Read more...] about Pound to euro hits 1.25 as Spain nationalises Bankia
Pound slips on surprise UK GDP downturn
UK sterling has given up almost a cent against the euro this week, as the ONS (Office for National Statistics) tells us Britain contracted -0.1% more than previously thought in Q4, to a total –0.3%. Obviously enough, this has stoked concerns the UK might re-enter recession in 2012, and in fact the OECD (those cheery fellows!) have already made this prediction. Bright side for Britain Fortunately, on the flip-side there are plenty of economists who accuse the OECD of doom-mongering here, and indeed UK performance in 2012 has been pretty solid so far. Both the manufacturing and services sectors expanded these past 3 months, while exports also enjoyed a solid increase. This suggests the UK … [Read more...] about Pound slips on surprise UK GDP downturn