This week was expected to bring hopes for the eurozone and help the euro to end its downtrend. Instead, traders felt more disappointment than encouragement from news. The end of the week was somewhat brighter, but not much.
The week started with uncertainty as traders were waiting for the meeting of the European leaders on Friday. The meeting indeed provided some positive results and lifter the euro. But the boost wasn’t nearly as big as Forex traders hoped. So what prevented the shared European currency to jump on the good news?
The most important downside factor for the euro was the announcement of the European Central Bank that it’s not going to expand its bond purchasing program. The central bank revealed some measures it’s planning to take for helping the eurozone, but market participants were hugely disappointed. Another negative factor for the currency of the eurozone was the claim of UK Prime Minister David Cameron that he’s not going to sacrifice the sovereignty of his country to save the euro.
Not all is lost for the euro, though. The discussion will continue through the weekend. And next week may be better than this.
EUR/USD was down from 1.3421 to 1.3385 this week, falling as low as 1.3278 and rising as high as 1.3485 in the middle of the week. EUR/GBP dropped from 0.8587 to 0.8541, while EUR/CAD went down from 1.3643 to 1.3610, following the drop to 1.3476 during the week.
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