As the European session opened the Euro declined against its American counterpart in response to remarks made by European Central Bank President Mario Draghi.
The Euro Exchange Rate was in the region of 1.3390 against the US Dollar as of 10:40 GMT
During a speech given in Jerusalem Draghi intimated that the central bank was still considering adopting non-standard monetary policy in order to spur growth in the Eurozone.
Draghi stated: ‘We will look with an open mind at these measures that are especially effective in our institutional setup and that fall within our mandate. Some of those measures may have unintended consequences.
“This does not mean that they should not be used, but it does mean that we need to be aware of those consequences and manage them appropriately.
“There are numerous other measures – standard interest rate policy and non-standard measures – that we can deploy and that we will deploy if circumstances warrant […] The ECB’s Governing Council has stressed that monetary policy will remain accommodative for as long as necessary. In the period ahead we will monitor very closely all incoming information on economic and monetary developments and stand ready to act if necessary.’
The EUR/USD paring achieved 1.3395 US Dollars
Draghi’s comments left the Euro trading in the region of 1.3329 against the US Dollar.
However, the common currency soon enjoyed a rebound, with the EUR/USD paring achieving 1.3395 US Dollars following the publication of economic sentiment surveys for the Eurozone and Germany, the currency bloc’s largest economy.
According to data compiled by the ZEW Centre for European Economic Research, an index of investor/analyst expectations for Germany climbed from 36.4 to 38.5 this month – beating economists’ expectations for a rise to 38.1.
This data is considered to be a good indication of economic developments six months ahead.
Meanwhile, an economic sentiment index for the Eurozone climbed from 27.6 in May to 30.6 in June.
In response to the data Frankfurt-based economist Johannes Gareis asserted: ‘Through the ‘catching-up’ effect after the long winter, the second quarter should be very positive. The recovery in Germany will be driven more by domestic demand and less from abroad.’
Similarly, another industry expert said of the economic situation: ‘We remain of the view that domestic demand should be supported by robust consumption growth. The strength of foreign demand, both from Europe and overseas, remains a concern in the near term.’
However, it wasn’t all good news today as ZEW’s current situation index for Germany defied expectations for an increase to 9.5 by falling from 8.9 to 8.6 last month.
Although today’s US inflation data could inspire Euro fluctuations in the hours ahead investors will also be anxiously awaiting the outcome of the Federal Reserve’s two-day policy meeting.
Current Euro (EUR) Exchange Rates
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3390 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8538 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4132 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6742 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7472 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1713 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7078 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5960 <
(Correct as of 10:40 GMT)
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