The single European currency saw peaks and troughs in the foreign exchange markets as trading got underway on Monday.
The first dip for the currency came after something of a deadlock emerged at a summit between heads of government from across the bloc at the weekend.
The leaders met face to face in Brussels to discuss their fiscal responses to the coronavirus pandemic, and they managed to make some agreements.
Charles Michel, who serves as the chairman of the summit in his capacity as President of the European Council, did indicate that a significant amount of this would be delivered in grant format.
One news report even suggested that €390bn of cash could be packaged in this format.
However, the leaders appeared unable to confirm exactly how the cash would be distributed.
The summit was scheduled to conclude on Saturday, but it has since been extended further as leaders attempt to negotiate tricky waters around questions of whether or not the richer, northern countries in the bloc ought to essentially pay for recovery in the poorer nations.
The euro managed to scale some new highs at first.
It reached $1.1467 in its pair against the dollar at one stage when Michel made his announcement, putting it at its best position in almost 20 weeks.
However, it later went down in value – before then rebounding by a fifth of a percentage point.
It was spotted at $1.1446 after that.
According to analysts, the currency appears to be finding it difficult to break ahead of the crucial $1.1495 benchmark – which, if it managed to do so, would be a significant development.
While most attention was focused on Europe, some small movements did happen in other countries.
In Britain, for example, the pound managed to hold firm in its pair against the US dollar – reaching $1.2572 at one point.
In its pair against the single European currency, however, it was down – but only by the small amount of 0.1%.
Here, it managed to reach 91.05 pence.
The fact that the pound avoided significant declines, however, is a sign that the underlying market mood is one of optimism.
The British currency has taken a beating in recent months due to the ongoing troubles posed by Brexit and, in particular, the trade deal that the country must strike with the EU before the end of the year in order to avert significant knock-on economic effects.
Whether or not this optimism will be able to survive the outcome of negotiations between European leaders (as well as other economies currently debating stimulus packages), however, remains to be seen.
Monday afternoon looks set to be dominated by speeches from central bankers.
These will begin at 2:30pm BST when Philip Lane, who sits on the Executive Board of the European Central Bank, speaks.
In the UK, meanwhile, a speech from Andrew Haldane, who is the Chief Economist at the Bank of England, will take place at 3:10pm BST.
This will be swiftly followed by a speech from Silvana Tenreyro, who sits on the Bank of England’s Monetary Policy Committee.
- EUR/GBP Eyeing 0.9282 Level on the Forex Price Charts
- NZD/USD Looking at 0.6503 Support, US Debate on Cards
- GBP/USD Will Struggle To Hit 1.30 Point, Say Analysts
- Stagnation for EUR/AUD as 1.6590 level proves crucial
- AUD/USD in the 0.7350 Region, Jobs Data in the Spotlight
- EUR/USD close to 1.1737 – what’s next for the euro?
EUR/GBP Eyeing 0.9282 Level on the Forex Price Charts
NZD/USD Looking at 0.6503 Support, US Debate on Cards
Safest Forest Brokers 2020
|Broker||Info||Best In||Customer Satisfaction Score|
|#1||Your capital is at risk Founded: 2012||Global CFD and FX broker||
Best FOREX BROKER Visit broker
|#2||Your capital is at risk Founded: 2012||Global Forex Broker||
Best Trading App Visit broker
|#3||Your capital is at risk Founded: 2010||Global Forex Broker||
Low minimum deposit Visit broker
|#4||Your capital is at risk Founded: 2006||Globally regulated broker||
BEST CUSTOMER SUPPORT Visit broker
|#5||Your capital is at risk Founded: 2014||Global Forex Broker||
BEST SPREADS Visit broker
Stay up to date with the latest Forex scam alerts
Sign up to receive our up-to-date broker reviews, new fraud warnings and special offers direct to your inbox