Euro finds support at 1.105
The euro to US dollar currency pair, which is directly related to the euro, fell by 0.19% on February 18, 2016. This was the fifth straight day of losses for the currency pair. The euro to US dollar, which was at 1.13 levels on February 12, had fallen to a low of 1.107. The downward trend of the currency was majorly attributed to the dovish stance of the European Central Bank (or ECB). The euro ended the day at 1.111.
Euro has been falling since ECB meeting
The downside on the Euro has been majorly due to the dovish tone in the ECB monetary policy minutes, which came out on February 18, 2016. With the next ECB meeting on March 10, the markets are definitely looking at the possibility of further easing measures from the ECB. The ECB also released the current account data, which represents the difference in value between imported and exported goods. The current account came out above the expectations at 25.5 billion against the forecasts of 22.3 billion.
Impact on the market
As for the performance of ETFs across the Eurozone, the iShares MSCI Eurozone ETF (EZU) was down by 0.86% on February 18, and the Vanguard FTSE Europe ETF (VGK) followed a similar trajectory, falling by 0.58%. The WisdomTree Europe Hedged Equity ETF (HEDJ) was trading 0.4% lower.
As for European ADRs (American depositary receipts) in the banking sector, Deutsche Bank (DB) saw a sharp fall of 4.7% while French ADR Alcatel Lucent (ALU) ended the day on a flat note. Finnish company Nokia (NOK) had a slight rise of 0.49% at the end of the day on February 18, 2016.