Euro – But…

So, the euro is on top! However, the common currency looks unlikely to continue to climb this week. This is because official data this Thursday looks set to show that the UK avoided a triple-dip recession. This may lift the pound against the euro as well as the greenback as it signals the UK economy is picking up.

Also, the Eurozone recession is expected to have deepened, according to fresh data due this week. This may bring the euro down as concerns about the currency bloc’s economy mount up.

Plus, the European Central Bank may soon cut interest rates below 0.75 per cent to support Eurozone growth. This could weaken the euro too because lower interest rates make the currency less profitable. Therefore, look for the pound and US dollar to rebound against the euro soon.

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