Disappointing German Business Confidence Triggers Decline in European Currency

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Forex Trading

: 26 September 2014

The much trumpeted expansion of the ECB's balance sheet to €3 trillion in an attempt to stave off deflation is still in its infancy.

However, the shared currency continued its decline versus the US dollar, losing another 30 points to $1.2750, suggesting that traders believe Mario Draghi means business.



Forex Trading

: 25 September 2014

Business confidence in Germany, Europe's biggest economy, slumped more than initially estimated which in turn triggered a renewed plunge in the common currency.

It was a steady decline against for the EUR/USD which ended below $1.28 for the first time in more than a year at $1.2780, a 67 point loss for the day.



Forex Trading

: 24 September 2014

We saw a slowdown for manufacturing and services in the Eurozone which threatens to put further pressure on the ECB to add stimulus to its economy.

After rallying in the morning session, the shared currency retraced later on, finishing the day unchanged against the dollar at $1.2848.



Forex Trading

: 23 September 2014

The conflict between Russia and Ukraine affected trade in the wider European area following the sanctions issued by both the EU and Russia.

In turn, consumer confidence in the Eurozone declined in September and the outlook is not hugely encouraging either.

Nonetheless, the shared currency posted a slim rebound against the US dollar, gaining 16 points to $1.2849.



Forex Trading

: 22 September 2014

The shared currency resumed its slump against the dollar on Friday, losing 88 points to $1.2836 and hitting a new recent low which was last seen in July 2013.

ECB President Mario Draghi is apparently committed to expanding the central bank's balance sheet back to €3 trillion, a level reached during the credit crisis in 2012, so euro weakness is almost a given.


By Jonathan Sudaria, 26 September 2014


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