The single European currency plummeted in value on Thursday after the European Central Bank announced that it would delay interest rate rises until next year – at least.
The Bank said on Thursday that its planned rises, which would mark the first since the financial crash, wouldn’t be happening this year.
It also made a number of pessimistic assumptions about economic growth over the next two years. It also said it would offer low-cost credit to companies too.
As a result, the euro went down to $1.1206 against the US dollar – a position it hadn’t seen since June of 2017.
Elsewhere, the Australian dollar continued a run of bad luck by going down 0.06% to $0.7028.
The Canadian dollar remained in relatively low territory overall, although it did manage to secure a 0.1% rise.
Against the euro, the Swedish currency, the crown, also fell to a low point. It went down by 0.62% compared to the single currency, and it also met its weakest level since December 2016 against the US dollar.
With a new foreign exchange trading week on the horizon, it’s a good idea to look at what’s on the cards.
Monday of next week will see an important meeting of the Eurogroup. This meeting will be attended by the Finance Ministers of every Euro country as well as other officials such as the President of the European Central Bank.
Later in the day, there will be a series of important releases from the US. Retail sales control group data for January will be out at 12.30pm GMT, and this is expected to show a change from -1.7% to +0.6%.
There’ll also be some business inventories data covering December out of the US at 2pm GMT. This is expected to show a change from -0.1% to +0.3%.
Into Tuesday, a major manufacturing production information release covering January will come from the UK at 9.30am GMT. Month on month, this was last recorded at -0.7%.
The US consumer price index (excluding food and energy) for February will be out at 12.30pm GMT. Month on month, this is expected to remain steady at 0.2%.
Year on year, however, this figure is due to show a slight drop from 2.2% to 2.1%.
At some stage, a vote will be held in the British Parliament on Prime Minister Theresa May’s latest attempts at Brexit negotiations.
The day will be rounded off by a Japanese domestic corporate goods price index release for the month of February, which is due at 11.50pm GMT. Year on year, this was last recorded at 0.6%.
Wednesday also has some important events. European industrial production figures for January are due at 10am GMT and were last recorded year on year at -4.2%.
The US producer price index covering the month of February is expected at 12.30pm GMT. Year on year, this is expected to shift from 2% to 1.9%.
Japanese machinery orders data for the month of January will be out late in the evening at 11.50pm GMT. Year on year, this was last recorded at 0.9%.
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