…an extraordinary strength of the Euro against all major currencies. Rather, it is unusually flourishing relative to the British Pound as it begins to find its level in the foreign exchange markets. On Tuesday, the Euro (EUR) rose 0.38% against the GBP. Its phenomenal increase became the best performer when compared to its counterparts. 230713– ECB board member Frank Elderson gave his views on the inflation dynamic so far. He shared these thoughts on the future of mobility during an interview with the Spanish newspaper, Expansion.
The Euro’s performance against the major currencies indicates a strength/weakness movement in the percentage difference. On the whole, the outlook by and large continues to look bright. The Euro managed a slight 0.04% increase against the USD, remaining flatline around the 1.1560 area. The currency was up 0.11% against the Japanese Yen (JPY). It climbed 0.05% against the CAD and 0.18% against the AUD. It did not move against the New Zealand Dollar (NZD), as its price change is 0.00%. The Euro had the best day today, rising 0.12% against the Swiss Franc (CHF).
Currency Performance Overview
Our new data from the foreign exchange market shows just how poorly the Euro has traded compared to other major currencies. Our heat map for this quarter shows some significant changes, including the Euro now in front of the British Pound.
- Against GBP: +0.38%
- Against USD: +0.04%
- Against JPY: +0.11%
- Against CAD: +0.05%
- Against AUD: +0.18%
- Against CHF: +0.12%
- Against NZD: +0.00%
These regulatory shifts prefigure a new world order in global currency trading. Like it or not, investor sentiment has been directed by many macroeconomic cues, especially as relates to inflation expectations.
Elderson’s Insights on Inflation
Speaking in his personal capacity to Expansion, Frank Elderson was realistic about the current inflation outlook in Europe. He conveyed a very measured view on inflation risks, while highlighting the fact that expectations for future inflation run the gamut.
“The risks of inflation turning out higher than expected are balanced with those of inflation being lower than expected.” – Frank Elderson
Elderson noted that despite fluctuations, he remains optimistic about achieving the ECB’s target inflation rate in the medium term.
“Overall, what we are now seeing is that it will converge to our 2% target in the medium term.” – Frank Elderson
His comments highlight the ECB’s dedication to controlling inflation above all else — a tough balance considering today’s economic shockwaves.