Euro Continues Slide Against US Dollar

The euro has fallen even further against the US Dollar, and has now been pushed below the $1.6 level over the past 24 hours.

This morning the euro was buying $1,056, this was having reached the $1.064 level only yesterday morning.

The euro is now at its lowest level compared to the US dollar since March this year.

On Thursday the European Central Bank (ECB) will gather for its next policy review meeting, and the prospect of further stimulus measures, has sent the euro plummeting.

It is expected that interest rates will be lowered, and that the ECB quantitative easing programme will be expanded.

The deposit interest rate to hold euros, is also likely to be cut to 10 base points, if a consensus is reached.

After the meeting if, as expected, the ECB announces a package designed to help the euro area, the euro itself is certain to take more pain in relationship with the dollar.

Last week the US economy’s growth rate was revised for the third quarter upwards to 2.1%, a 0.6% difference from the original announcement.

Euro Up and Down Against the Pound

In contrast to its relationship with the dollar, the euro has gained ground on the UK pound, although the euro has fluctuated against sterling.

Yesterday morning the euro was buying just under £0.702, before climbing up to £0.705 past 6AM GMT.

It then fell to £0.702 as the morning progressed, ands then bounced back up £0.705. It has remained at around that level moving into today.

If there is a ‘big bang’ announcement from the ECB on Thursday, then the pound could make a leap to buy EUR1.44, and equal the highest conversion rate against the euro for this year.

Pound Sinks Against the US Dollar

The pound has fallen to its lowest level against the dollar since the summer time, as the pound now only buys the relatively low figure of  $1.50.

Analysts believe that the pound will probably keep falling against the dollar, especially until the UK’s relationship with the European Union is resolved.

The promised ‘in-out’ referendum from David Cameron’s Conservative administration, is likely to happen at some point next year.

Recent polls have shown that the majority of British citizens wish to leave the European Union.

Although the consensus from the business community has often been to remain in the trade bloc, but with reforms such as cutting red tape.

Gold and Silver Rise Against the Euro

The euro has not fared that positively against major commodities over the past 24 hours, as gold has risen by 0.7% against the currency.

Although over the last five days, an ounce of gold has dropped to 998.72 against the euro from the 1.01 last week.

Silver has appreciated against the euro by 0.26%, a higher margin than gold, and one ounce of silver is worth 13.34.

Over the past five days, silvers relationship with the euro has ebbed and flowed, reaching the 13.60 level, before dropping.