The US dollar is back in action! America’s currency rose to its highest point against the euro since January 3rd this week, or almost two months, to 0.7659. How come? First, because automatic spending cuts worth $85bn have come into force in the States, following US leaders’ failure to agree a deficit reduction plan. That’s led investors to shelter in the safe-haven greenback. Second, because Italy remains in deadlock, following its weekend election. To put this into context, the US dollar was at 0.732 against the euro at the start of February, meaning it’s since climbed more than 3 cents. A $250,000 transfer is hence worth €8.475 more than a month ago. (Please bear in mind, these are … [Read more...] about US dollar to euro hits 2-month high, as US spending cuts kick in
foreign exchange
Euro wobbles as ECB hints at intervention to curb its strength
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
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?
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
Euro rally ends as ECB hints at rate cut
Welcome to the Pure FX account of the latest changes in the euro exchange rate, covering the 30th November to 7th 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. If you plan to transfer money to Spain or Portugal, there may finally be some good news for you from the foreign exchange market this week. This is, the euro’s six-week rally against the pound and US dollar has come to an unceremonious end, as the European Central Bank hints it might cut interest rates below 0.75% in 2013. This was widely unexpected and caused the euro to lose more than a fortnight’s gains against sterling in … [Read more...] about Euro rally ends as ECB hints at rate cut
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
Pound falls as UK faces triple-dip recession
Welcome to the Pure FX account of the latest changes in the euro exchange rate. 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 GBPEUR: 1.2527 to 1.2443 (-0.671%) GBPUSD: 1.5989 to 1.5875 (-0.713%) EURUSD: 1.2762 to 1.2758 (-0.031%) The pound lost out to both the euro and US dollar this week, putting an end to three weeks of gains against the common currency, as the Bank of England warns the UK faces a possible triple-dip recession in 2013. This pound loss came in spite of the fact that, meanwhile, the Eurozone officially entered recession this week, contracting … [Read more...] about Pound falls as UK faces triple-dip recession
Pound hits three week high as UK expands 1.0% in Q3
Welcome to the Pure FX account of changes in the euro exchange rate, covering the 19th to 26th 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: Last week: 1.2276 Today: 1.2457 Increase: +1.474% Pound to US dollar: Last week: 1.6038 Today: 1.6108 Increase: +0.436% Euro to US dollar: Last week: 1.306 Today: 1.2925 Decrease: –1.034% The UK pound reversed a four-month decline against the euro this week, gaining almost two cents against the common currency. This takes sterling back to a level we last saw in early October, when … [Read more...] about Pound hits three week high as UK expands 1.0% in Q3
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