EUR/USD
The euro bordered higher against the dollar in low-volatility trade on Monday, while most Asian exchanges remained closed due to the Lunar New Year.. EUR/USD hit 1.3391 during late Asian trade, consolidating at 1.3379. The euro came under pressure after ECB Chief Mario Draghi said that the eurozone’s chief financial body would diligently observe changes in the markets to see if the sturdier euro had an impact on the inflation. The ailing single currency was also further smashed by hesitation ahead of Italian elections and new political tensions in Spain where the government is entangled in a corruption debacle.
EUR/GBP and EUR/JPY
The euro pressed higher against the sterling, with the pair rising 0.22 percent to 0.8479 and was virtually unaffected against the yen, with EUR/JPY inching up 0.01% to 123.91. The eurozone’s finance ministers were to convene in Brussels later today, after last week’s EU summit during which EU leaders reached a settlement on a seven year budget deal last Friday. According to the agreement, European governments will pay marginally smaller amounts for the present budget, compared to the prior seven year budget, following appeals to control spending.