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.

Weekly Roundup: Euro rocked by energy concerns

currency-newsWeekly Roundup: Euro rocked by energy concerns
The euro opened this week on a positive note, with the single currency firming as EUR investors expressed their relief at Emmanuel Macron’s victory in the French presidential election.

However, these gains proved short-lived, with the euro quickly falling afoul of its negative correlation with the US dollar as the latter surged, overshadowing Germany’s stronger-than-expected IFO business climate index.

The euro then sought to mount a recovery on the back of comments from European Central Bank (ECB) policymaker Martins Kazaks, in which he expressed his support for a July interest rate hike.

However, these gains were quickly erased again as investors continued to pile into the US dollar, and EUR investors were unnerved by Russia’s move to halt gas exports to Poland and Bulgaria.

This sparked concerns over the Eurozone’s energy security as the Kremlin warned other ‘unfriendly countries’ could also be cut off.

The end of the week then saw the publication of the Eurozone’s consumer price index, which despite reporting inflation in the bloc climbed to a new record high, was unable to offset a weaker-than-expected Eurozone GDP print.

Looking ahead, the heightened tensions between Russia and the EU could limit the upside potential of the euro over the coming week, with their being significant downside risks for the single currency if Moscow shuts off the taps to other countries like Germany.

In terms of data the focus will likely be on Germany’s latest industrial data. Could a contraction in German factory orders and industrial production in March, exert some pressure on the euro in the latter half of the 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.