You've landed on our UK website.
Click here to visit our USA website.

If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

EUR/USD refreshes year-to-date lows on dovish ECB comments

currency-newsEUR/USD refreshes year-to-date lows on dovish ECB comments
The euro tumbled at the end of last week’s session, being undermined by comments made by European Central Bank (ECB) President Christine Lagarde.

The pound, meanwhile, is struggling in early trade this week, with GBP/EUR muted at €1.1909 and GBP/USD dipping to $1.3423. GBP/CAD is rangebound at C$1.6979, while GBP/AUD and GBP/NZD retreat to AU$1.8530 and NZ$1.9165 respectively.

Looking ahead, will the euro extend these losses at the start of this week with the publication of the Eurozone’s latest consumer confidence index?


What’s been happening?

The euro closed last week’s session on the defensive, with the single currency coming under pressure for some dovish comments by European Central Bank President Christine Lagarde, in which she suggested ‘the conditions to raise rates are very unlikely to be satisfied next year’.

Moreover, the announcement that Austria would be re-entering lockdown also weighed on EUR exchange rates.

In addition to this the euro was also undermined by the strengthening of the US dollar, which was bolstered by considerable risk-off flows on Friday.

The souring market mood was attributed to lingering concerns over the collapse of the Turkish Lira, as well as anxiety over Europe’s Covid resurgence.

Meanwhile, the pound traded with modest gains at the end of last week, after the UK’s latest retail sales figures beat forecasts, further bolstering expectations for the Bank of England (BoE) to hike interest rates next month.


What’s coming up?

Turning to this week, the focus at the start of the session will be the releases of the Eurozone’s latest consumer confidence index.

This could see the euro struggle today as economists forecast consumer morale will have deteriorated again in November.

In the meantime, the publication of the Confederation of British Industry’s (CBI) industrial trends order index could help the pound get off to a robust start this week, if order growth improved as forecast this month.

Finally, in the absence of any notable USD data, the direction of the US dollar may be dictated by market sentiment, potentially pushing the ‘greenback’ higher if Friday’s risk-off mood persists into this week.
Philip McHugh

Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.