Eurozone Inflation and Euro Exchange Rates
Today the markets main focus will be on the latest Eurozone inflation figures which have been a vitally important in recent times and were one of the key reasons we saw the European Central Bank (ECB) cut interest rates and set deposit rates to negative levels which saw the EUR weaken significantly. Today’s announcement is predicted to show an improvement with the figure expected to be at 0.8% compared to last years 0.7% and should this happen I am sure that Mario Draghi, Head of the ECB, will be pleased to let everyone know that this is thanks to his recent interest rate changes. However, should we see inflation remain low or even fall further then we could see the rates of exchange move again as it will bring back into focus comments from Mr Draghi who stated that the ECB will act again should inflation remain low and the Eurozone economy remain stagnant.
With so much riding on this mornings announcement it will be incredibly important to stay informed of the latest decision so if you need to buy or sell Euros and would like to know what happens when the inflation figures are released just call one of our senior currency brokers for free on 0800 328 5884 or if calling from abroad call us on 0044 1494 725353.
Canadian Interest Rates and CAD Exchange Rates
Last night, as predicted, the Bank of Canada kept interest rates on hold at 1% which saw the Canadian Dollar strengthen back against the Pound as the consistency of interest rate shows a level of confidence in the Canadian economy. Despite this move Sterling is still very strong against the Canadian Dollar and is close to a 5 year high which means there are some excellent opportunities to buy CAD. If you need to transfer funds to Canada and would like to discuss the options available to you call us today.
USD Currency Rates
This afternoon the latest set of US unemployment figures are due for release and are expected to show a small increase which could lead to some Dollar weakness and therefore push GBP USD exchange rates up even higher than the current exchange rates which are not far off a 6 year high! The US economy has shown better stability in recent months but Janet Yellen, Head of the FED, stated recently that US unemployment was a concern and could cause some long term problems and delay the recovery meaning todays figures will be very important and important for any clients buying or selling Dollars.