16th March to 20th March 2009 Euro / USD

Posted by admin | Posted in Weekly and Daily Wake up | Posted on 16-03-2009

Tags: euro

The current rate of Euro is 1.2934 which is showing a bullish trend from the trading of the last week. The Euro was floating at 2.17% positive from the last week trading. Moreover Euro recorded a high as its value was 0.57% more than the last week.
But the week witnessed various highs and lows. The European Central Bank (ECB) lowered the interest rates from 2% to 1.5% which is record low interest rates for Euro zone. Moreover the rising recession has had its worst impact on the euro zone. Moreover fall of large European stocks had an impact on the decision of lowering the interest rates. Euro fell 40 pips from 1.2577 levels to 1.2615 levels. Euro was floating in the range of 1.2450 to 1.2750.
The tumbling economy of Germany also had an impact of the trading of euro currency. Germany being the key member of European Union has a major impact. The manufacturing orders of Germany tumbled due to global meltdown which has made a substantial difference in the exports of Germany. The exports have plunged around 8%. Poor manufacturing data had an impact on the intraday trading of Euro.
But Euro finished at multi week high against US dollar. Number of bearish figures of European economic data had a impact on the Euro currency. Fresh economic distress may pose problem for structural risks in the Euro zone. So now, major eyes are set on the G20 summit which is an important day for the major stocks and currencies world wide and the financial markets across the globe.
Moreover European countries have shown clear resistance on matching US fiscal and monetary stimuli. Fears of fiscal deficit and terms of European Union membership prohibit many members for aggressive public spending which is again a disadvantage for euro zone and the currency of euro.
Analysts predict that Euro zone consumer price index may have picked up during the month of February which will handicap ECB’s ability to boost the domestic economic prospects of the European countries.