As the German constitutional court gathers to discuss the legality of the European Central Bank’s bond-buying programme the Euro stayed relatively flat.
The Euro Exchange Rate was in the region of 1.3277 against the US Dollar as of 11:35 GMT
Although a decision is unlikely to be reached prior to the German general elections this September, there are fears that Bundesbank Governor Jens Weidmann’s oppositions to the scheme could hold sway.
However, ECB President Mario Draghi was quick to assert that he believes that the German court will consider the case in an unbiased way. During an interview for German ZDF television he stated: ‘I have full confidence in the constitutional court’s independence, also in its ability to examine with thoroughness and with fairness all the advice it is getting from all sides. It would be presumptuous of me to say what the conclusion could be.’
Euro is little changed against the US Dollar
And as proceedings got underway today Wolfgang Schäuble, German Finance Minister, defended the Outright Monetary Transactions programme, which sanctions the buying of a potentially unlimited number of bonds belonging to struggling nations as long as they adhere to strict reform conditions. Schäuble stated: ‘The German Government sees no signs that the measures taken by the ECB so far violate its mandate’. He also intimated that if the OMT programme was rejected Germany could end up leaving the Eurozone as a result.
The Euro is likely to experience volatility tomorrow following the release of German CPI figures and Eurozone Industrial Production data.
Economists have forecast that the German Consumer Price Index will be unchanged in from April to May while industrial production in the Eurozone declined by 1.1 per cent in April following the previous month’s 1.7 per cent advance.
Although the Euro is little changed against the US Dollar it posted a modest advance against the Pound and rose considerably against the Australian and New Zealand Dollar’s as the South Pacific currencies broadly declined.
Current Euro (EUR) Exchange Rates
< Lower > Higher – Little Changed
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3277 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8542 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4231 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6980 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7526 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1707 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7035 <
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5890 <
(Correct as of 11:35 GMT)
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