French Economy Contracts – EUR Exchange Rates
It was announced this morning that the French economy had contracted by 0.1% in the third quarter of the year in yet more bad news for the single currency economy. In the meantime though the German economy grew by more than expected chowing growth of 1.1% (compared to the UK of 0.8%). So, it appears at the moment the negativity of France’s contraction is being balanced by the growth seen in Germany, however what should be noted is that France is one of the largest economies in the Eurozone and so this decline could have a bad knock on effect for both the Euro and Sterling. As one of the UK’s largest trading partners any weakness in the Eurozone can actually hamper the UK and therefore Sterling meaning poor figures in Europe have wider reaching effects than just EUR weakness.
Later this morning we have the Eurozone Gross Domestic Product (GDP) figures which will take into account all the different countries GDP figures and give an overall number. This could be critical for EUR exchange rates as if the figure shows a decline there will e the threat of recession again for the single currency economy which could hamper Euro exchange rates. This data release is out later this morning so if you need to buy EUR call us today on 0044 1494 725353.
UK Retail Sales – GBP Exchange Rates
This morning it has been confirmed that UK Retail Sales were much lower than expected declining by 0.7% last month bringing the annual figure down to 1.8% compared to the expected 3.1%. This large drop has caused Sterling to weaken this morning with Sterling Euro falling down by a third of a cent and the Dollar falling below the crucial 1.60 mark. This shows that the market can change very quickly with very little warning, so if you have an upcoming currency requirement then it is worth speaking with one of our experienced currency brokers who will be happy to discuss your currency requirements and the different options available to you. You can call straight through to us for free on 0800 328 5884 or alternatively email me directly on firstname.lastname@example.org