The euro had a stellar week against the US and Australian dollars, but performance against some other currencies, including the Great Britain pound and the Japanese yen, was less impressive.
The most important event for the euro this week was the monetary policy decision of the European Central Bank. As was expected the policy remained unchanged. The announcement turned out to be very bullish for the currency.
Other central banks also kept their policies stable with various outcomes for currencies. The Bank of England’s decision allowed the pound to outperform the euro. The Reserve Bank of Australia indicated that lower interest rates are probable in the future, driving the Aussie down.
Elsewhere, US non-farm payrolls were better than expected, driving the greenback up. The Japanese yen was also strong as officials did not show willingness to stimulate the economy more.
EUR/USD climbed from 1.2993 to 1.3217 over the week and the weekly high of 1.3303 was highest since February 25. EUR/AUD jumped from 1.3498 to 1.3910, the strongest weekly close since March 2011. EUR/GBP was down from 0.8541 to 0.8496. EUR/JPY dipped from 130.47 to 126.10 before closing at 128.76.
If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.