The Euro slipped to a two-week low in early morning trading on Monday as the currency continues to retreat from the 15-month highs it achieved in the early part of 2013. The retreat comes as investors grow increasingly concerned over the political uncertainty in Spain and Italy, as-well-as dovish comments made by the European Central Bank.
The currency sunk to $1.3325 after stop-loss selling was triggered as it hit the $1.3340 mark. Since early morning it has recovered slightly rising to the position it closed at on Friday. The currency has seen little support from news out of Asia due to the majority of Asian markets being closed to celebrate the Lunar New Year. The economic centres in China, Hong Kong, Japan, South Korea, Taiwan and Singapore are all closed.
Since the currency hit its 15-month highs it has depreciated by around 2.5%. Comments made by European Central Bank President Mario Draghi kept the possibility that the Bank could cut its already record low interest rates further in an effort to contain the strength of the Euro if it continued to rise.
Against the British Pound the Euro strengthened after the latest business confidence survey compiled by Accountancy firm BDO showed that confidence in the UK has sunk to its lowest level in 21 years.
Peter Hemington, a partner at BDO, said; “It seems the damaging effects on businesses of five years’ zigzagging economic growth has left them wary of making concrete plans for expansion and resigned to the ‘new normal’ of economic stagnation. To end this cycle, it is imperative that the government implements plans to expedite growth.”
Further disappointing news out of the UK this week will almost certainly see the single currency start to strengthen against the Pound once more.
As of 09:55 pm
The Euro to Pound Sterling exchange rate is currently trading in the region of 0.8523
The Euro to US Dollar exchange rate is currently trading in the region of 1.3387
The Euro to Australian Dollar exchange rate is currently trading in the region of 1.3032
The Euro to New Zealand Dollar exchange rate is currently trading in the region of 1.6099
The Euro to Canadian Dollar exchange rate is currently trading in the region of 1.3476
The Euro to Emirati Dirham exchange rate is currently trading in the region of 4.91759
The Euro to Swiss Franc is currently trading in the region of 1.2272
The Euro to Japanese Yen exchange rate is currently trading in the region of 124.6825
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