The euro, along with the Swiss franc (which is tied to the shared 18-nation currency due to the ceiling introduced by the Swiss National Bank), was the weakest major currency on the Forex market this week. Persisting speculations about monetary easing from the European Central Bank in June continued to erode the strength of the currency.
The euro dropped last week after the ECB suggested a possibility of additional economic stimulus next month, and it was expected that the currency would remain soft this week too. Such expectations proved to be correct, not least because of speculations that the Bundesbank is going to support monetary accommodation. Disappointing reports about economic growth in the eurozone added to the bearish momentum of the shared European currency.
The euro fell for the second consecutive week against other major currencies, including the pound. The sterling had its own problems because of disappointing employment data and talks that the Bank of England is not going to raise interest rates as soon as some market participants were hoping for, yet the British currency was nowhere near as weak as the euro.
EUR/USD dropped from 1.3752 to 1.3697, reaching the low of 1.3648 during the week. EUR/JPY went down from 140.10 to 139.08. EUR/GBP fell from 0.8163 to 0.8143, reaching the low of 0.8126 — the weakest price since January 2013.
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