Euro Stronger After Week of Policy Decisions

This week was fairly important for the euro as the European Central Bank held its monetary policy meeting over the week. Several other central banks made policy decisions too and US nonfarm payrolls were another important event during the week.

As was expected, the ECB held rates steady and this brought the euro higher. Other major central banks, the Bank of England and the Bank of Canada, also did not change their borrowing costs. Central banks of smaller economies, Poland and Mexico, made no changes to their policies too.

Much anticipated US nonfarm payrolls were released on Friday. The report surprised not only by being better than expected, but by the market reaction to it. Traders avoided safer currencies, preferring riskier ones, while analysts assumed that they would do the opposite.

EUR/USD was up from 1.3582 to 1.3701 over the week following the drop to 1.3523. EUR/JPY advanced to 140.94 from the opening of 139.21 and the weekly low of 138.41. EUR/GBP opened at 0.8296, fell to 0.8251, but rebounded to close at 0.8383.

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