With all the talks about monetary tightening in the United States and quantitative easing in the eurozone, the euro was still rising against the US dollar. The euro’s performance against other currencies was also strong with the exception of the Great Britain pound.
The shared 19-nation currency was rising against the greenback due to the improving risk sentiment and speculations that the Federal Reserve is not going to start monetary firming this month. Risk appetite allowed the euro to gain also against the yen.
The currency of the eurozone also performed well against commodity currencies. The Canadian dollar was supported by the policy meeting of the Bank of Canada while the New Zealand dollar was hurt by the policy decision of the Reserve Bank of the New Zealand, but both currencies showed the similar performance versus the euro. Namely, they fell.
The sterling was the only currency supported versus the euro by a policy outlook.
EUR/USD rallied 1.6 percent from 1.1161 to 1.1331 over the week. EUR/JPY climbed as much as 3 percent from 132.74 to 136.58. EUR/GBP ended the week at 0.7345 after opening at 0.7351 and falling to the low of 0.7239. EUR/CAD advanced from 1.4795 to 1.5022. EUR/NZD jumped from 1.7703 to 1.7936 after touching the weekly low of 1.7334.
If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.
