Euro Gains Value Against the US Dollar

The euro has grown against the US dollar over the past 24 hours, rising to buying $1.102 early yesterday afternoon GMT.

Since the European Central Bank’s decision to reduce deposit rates to 0.3%, and extend their quantitative easing programme until March 2017, the euro has risen in value against the dollar.

This has reversed the trend in a year, as since February the euro has plummeted against the greenback.

Even though the situation has currently improved, then euro is still way down on the $1.25 value at the beginning of the year.

The Federal Reserve will meet on December 16, where an  interest rate rise is expected, with the strong likelihood that the euro will suffer a heavy fall against a rising dollar. 

The euro has had a chaotic relationship with the UK pound, peaking at buying £0.725 and falling to £0.721.

Since the ECB policy meeting, the euro has increased in value against the pound, in a similar vein to the dollar.

Euro Continues to Climb on Asian Currencies

The euro has gradually risen against the Chinese RMB over the weekend, reaching a high of RMB 7.12 in the early hours of this morning GMT.

Currently the euro is buying RMB 7.08, and is now enjoying its highest value against the yuan since the latter part of October.

In contrast the euro has fallen against the Japanese Yen over the weekend. Since the early hours of yesterday morning the euro has reduced from buying Y133.8 down to just over Y132.6

Gold and Silver Lose Value Against the Euro

Gold is 0.40% lower this morning against the euro, and an ounce of gold is currently priced at EUR 974.

Over the past month, in contrast to how the euro has performed in comparison to major currencies, the euro is buying gold at a lower rate than for most of this year

A month ago, a euro bought over the 1000 mark, and the year high against an ounce of gold, has seen the euro climb to 1.154.

Compared to silver, the euro has appreciated by 0.96%, and is currently buying an ounce of silver for 12.55.

Although the year high against silver was the euro buying 16.3 ounces, and over the past month the euro has fallen to its current level from buying 13.40.

Fitch Hands European Stability Mechanism Triple AAA credit rating

Fitch Ratings has affirmed the European Stability Mechanism’s (ESM) Long-term Issuer Default Rating (IDR) at ‘AAA’, with a stable outlook and short-term IDR at ‘F1+’.

The ratings agency has handed the ESM the highest evaluation, as a reflection of the strong support that the ESM has received from the euro area member states

Also, Fitch has affirmed the long term rating of the guaranteed long term debt issued by the European Financial Stability Facility, with an AA rating. This is due to the guarantees and over guarantees from the euro area member states, who are rated at AA or above.

The issue ratings of ESM’s unsecured bonds have also been affirmed at ‘AAA’ and ‘F1+’.