After the European Central Bank opted to hold the benchmark rate at the record low of 0.5 per cent and leave stimulus levels unchanged (as predicted by the majority of economists) the Euro climbed against its peers – achieving a four week high against the US Dollar.
The Euro Exchange Rate was in the region of 1.3158 against the US Dollar as of 15:30 am GMT
Although the European Central Bank left policy unaltered the tone of ECB President Mario Draghi’s accompanying statement was enough to strengthen the common currency.
During the press conference in Frankfurt Draghi asserted: ‘Recent developments in economic sentiment data have shown some improvements […] Euro-area economic activity should stabilise and recover over the course of the year albeit at a subdued pace. We will monitor very closely all incoming developments and we stand ready to act […] We have a range of different instruments.’
The Euro advanced on the US Dollar after the announcement
Despite some less than impressive data releases coming out of the currency bloc in recent weeks, the ECB currently feels that it is ‘not enough to grant immediate action.’
After Draghi spoke one currency strategist commented: ‘Draghi is painting a better picture than last time. That makes it less likely that they will cut rates. Draghi mentioned that they don’t need to use all the tools yet, that’s positive for the Euro.’
The Euro advanced on the US Dollar after the announcement, achieving $1.3166, and posted notable advances against several of its other main currency peers. Gains against the Pound were limited as the British currency broadly strengthened in reaction to positive UK data and the Bank of England also leaving rates and policy unaltered.
However, despite Draghi’s optimism, the European Central Bank still cut its growth forecasts for the currency bloc this year. The ECB now predicts that the Eurozone will contract by 0.6 per cent in 2013 before posting growth of 1.1 per cent in 2014.
Current Euro (EUR) Exchange Rates
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3158 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8511 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3895 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6495 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7612 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1742 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7251 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6062 <
(Correct as of 15:30 GMT)
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