Euro punishes sterling but weakens against the US dollar

Wednesday was a fairly quiet day for the euro as it moved down broadly as the Chinese yuan stabilised, due to better-than-expected trade balance data released – this strengthened the US dollar. With no significant data out from the Eurozone, the single currency found little support but still made small but surprising gains against sterling. This has followed the trend of the week so far, with sterling being punished and the US dollar looking well-supported.

Today there are Eurogroup meetings taking place in Brussels. Depending on the outcome – or if interest rates are mentioned in any of these meetings – then we may see some movement for the single currency. Other than this we can expect another quiet day for the euro, unless events elsewhere shake up currency markets.