Euro Exchange Rate Plummets With Euro Dollar 5 Week Low; World Waits US Job Figures

Modified: Friday, 6 July 2012 10:44 BST - Written by Tim Boyer

STORY LINK Euro Exchange Rate Plummets With Euro Dollar 5 Week Low; World Waits US Job Figures

The Euro is set to end the week down against a basket of currencies following the lack of investor confidence in the European Central banks attempts to bolster the struggling Eurozone economy. The single currency is struggling at a five week low against the US Dollar and is facing record lows against commodity currencies such as the Aussie Dollar, Canadian Dollar and the Kiwi.

The drastic decline has come after investors were less than impressed with the ECBs latest decision to cut interest rates to a record low of 0.75% and its surprise addition of cutting the deposit rate to 0pc from 0.25pc. Confidence in the single currencies chance of getting the debt crisis under control continues to plunge as investors believe that the ECB and EU leaders aren’t doing enough to resolve the regions issues. Traders are predicting that pressure may ease off against the Euro in the run up before the release of the latest US jobs data.

Yesterday afternoon the currency had been trading at 1.251 against the ‘Greenback’ before plummeting to today’s level of 1.239. The Euro fell against sterling to 79.75 pence, putting it very close to a low of 79.505 reached in mid-May.

The other major currency news comes from the United States as investors await the release of the US employment report. Most observers are expecting the US economy to have created an extra 100,000 jobs in June, the largest increase in three months. The overall unemployment rate is expected to stay at the 8.2% level but if the figures that come through are worse than expected then calls for further quantitative easing in the US are sure to get louder.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Australian Dollar Forecasts Canadian Dolla Forecasts