Euro Is Weakening due to Ireland’s Budget Deficit

EUR/USD Last week the Irish government released a plan to cut spending and raise taxes by 6 billion euros in 2011. Due to concerns over the Ireland’s budget deficit, the euro fell for a second day versus the dollar. In fact, the single currency weakened versus 13 of its 16 opponents. The arrival of the EU Economic and Monetary Affairs Commissioner Olli Rehn in Ireland is highly anticipated as he is coming to discuss the spending cuts and tax increases in the country. EUR/GBP No major events are expected for…

Read More

Euro Looks Healthy, Likely to Continue Growth

EUR/USD The euro is said to benefit from a “currency war,” in which many countries step in to keep their currencies weak, and thus to protect exports. “The euro is one of few major currencies where there are no deliberate measures to try to weaken the currency, either directly through intervention or indirectly through QE (quantitative easing),” said Micheal Derks, currency strategist at FXPro. Steve Barrow, head of G10 currency research at Standard Bank, predicts the euro will rise to $1.45 in three months, even if the Federal Reserve insists…

Read More

Busy Week for the EUR/USD

EUR/USD traders should expect a busy week, economists warn. The pair continued falling at the beginning of the week, dropping below 1.3830. It then recovered and managed to reach the current 1.3977. The quantitative easing program in the US caused the vulnerability of the EUR/USD, as it is said to exceed $500 billion. In addition, the USD is speculated to drop this week. The pair is, however, supposed to calm down by the end of this week. The GBP/USD made a gradual and choppy climb up last week, and managed…

Read More

EUR/GBP News, Oct. 25-29, 2010

EUR/GBP The euro demonstrated a steady growth against the sterling last week. It opened at 0.8721 pounds last Monday, and it reached 0.8894 pounds closing price on Friday. This week started even higher – at 0.8901 and is currently at 0.8906 and going upwards. Economists say that this Monday, the pound fell to its weakest point for the past seven months against the euro as a result of a drop in mortgage approvals to the least since March last year. It is also speculated that the Bank of England may…

Read More

Any Dollar Rebound Will Be Temporal – for Now

EUR/USD 1.3814 GBP/USD 1.5707 GBP/EUR 1.1427 (0.8751) The euro slid to a two-week low at $1.3697 yesterday, but it gained back to $1.3814 this morning. The dollar fell due to speculations that the Federal Reserve officials will signal further credit-easing measures to support economic growth – possibly $100 billion a month in bond buys. The U.S. dollar index, which tracks the greenback versus six other currencies, released its biggest daily gain since August on Tuesday. Analysts, however, said the market overreacted as the Federal Reserve was set to ease monetary…

Read More