During the past trading week, the euro was down against the US dollar and the Japanese yen, mostly flat versus the commodity currencies, but managed to gain on the Great Britain pound and the Swiss franc.
The euro continued to suffer from anticipation of monetary easing from the European Central Bank that may happen as soon as the next week. Meanwhile, market participants continued to expect monetary tightening from the Federal Reserve. The policy outlook divergence was hurting the euro strongly.
The eurozone currency was not the only one suffering from the divergent policy outlook as the Swiss franc was also hurt by expectations of monetary stimulus. The Great Britain pound was falling as well after losing support from expectations of tighter monetary policy. This allowed the euro to beat the Swissie and the sterling.
EUR/USD declined from 1.0639 to 1.0593 — the lowest weekly close since April. EUR/JPY was down from 130.73 to 130.13, also the lowest weekly settlement in 7 months. At the same time, EUR/GBP was up from 0.7010 to 0.7042. EUR/CHF jumped from 1.0844 to 1.0903.
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