Euro weaker on ECB cash injection

The Euro exchange rate has recovered most of its losses of the last couple of days, after the ECB pumped €442bn into credit markets to encourage liquidity to help resolve the Eurozone’s recession.

This is similar to the Bank of England’s quantitative easing programme, which initially weakened the Pound before seeing it strengthen weeks later.

If the same pattern happens for the Euro, we could therefore be entering a brief period where the single currency is at cheaper levels.

If you are worried about the increased cost in recent months of sending money abroad, don’t forget you can fix exchange rates up to 2 years ahead through a reputable currency broker.