The European currency further decreases in relation to the USD
European currency continued its decrease in relation to the USD after the news that the Euro confidence declined sharply was issued. This event has also led to the deteriorating of the possible growth of the interest rate from the European Central Bank.
As for the numbers the Euro confidence index has decreased to the point of 89.5 that is its lowest level reached throughout the last 5 years. According to the report the confidence affected almost all sectors and countries of the Eurozone.
Due to Gareth Clase an analyst at Royal Bank of Scotland the ECB will probably change it intentions in relation of the economic growth throughout its next meeting. The possibility of the interest rate growth has sharply decreased added Clase.
On the other hand the possibility of interest rates cut from the European Central Bank is also quite low because of the possible growth of the inflation. The high inflation numbers reported by Germany make the experts think that the European CPI inflation data will turn to be quite strong thus leaving almost no possibility for interest rates cut.
Due to Stuart Bennett a senior forex strategist at Calyon the increasing growth risks however don’t mean the increase of price stability risk that still remains unchanged. Thus strong inflation trends make us still suppose that the growth of the refi rate by ECB is nevertheless possible.
As for the USD the main point here at the moment is the soon release of the US private payrolls data that is supposed to clear situation a bit.
According to the latest forex trades data the Euro was at the point of $1.5588. The USD was traded at 107.84 Japanese Yen. And the British pound increased a bit after the issue of the low data in European report. Thus the British pound was at the point of 0.7867 Euro.
