EUR Exchange Rates Ahead of Inflation Figures

This morning we have already seen a weakening in the Euro ahead of the inflation figures that are released at 10am, these figures could be absolutely vital in dictating the future of EUR exchange rates. The predictions for this mornings announcement are all predicting a drop but the amount of this decline is varied across different sources that are predicting this mornings news, some are saying the drop will be by 0.1% while others are stating a decline of 0.3% which could spell some big movements in the currency markets. If inflation this morning is negative then we could witness some further Euro weakness potentially pushing rates back towards the high levels we saw earlier this month, however should it be better than expected then we may see the Euro strengthen and some jaw boning from from the European Central Bank who would have some of the pressure lifted. Recently we saw the European Central Bank cut interest rates to a new record low due to falling inflation and the threat of deflation so negative figures today could lead to pressure for the Central Bank to act again when they meet next week which could lead to yet another volatile period on GBP EUR exchange rates. So, with such an important economic data set about to be announced it will be very important to speak with one of our senior currency brokers here at Foreign Currency Direct plc so they can discuss your currency requirements and the options available to you.

You can call straight through to our trading floor to speak with our team on 0800 328 5884 or if calling from abroad on 0044 1494 725353 alternatively you can email me, Tom, directly on

USD Exchange Rates

Yesterday¬†we saw further positive news from America with their Gross Domestic Product (GDP) figures revised up to 2.2% for quarter 2 of 2014 while their jobless figures also dropped as the job market showed a slight improvement, both of these figures combined helped the Dollar gain ground against most the major currencies including pushing back down towards the 1.65 level which is now a stark contrast from the 1.70’s earlier in the month and means there are some excellent opportunities for clients looking to sell USD. However, for those clients looking to buy Dollars the question is; will the Pound regain any of these recent losses? At the moment, the American economy has witnessed a raft of positive economic data while some of the news in the UK has dissapointed and we will need to see a reverse of these fortunes for a change in the current trend. October will be an interesting month for the USD as it should be the month when the FED finally end their bond buying scheme which has been pumping billions of Dollars into their economy for a significant period of time. Should the lack of this money from the FED have a negative impact on the US economy we could witness a decline in their fortunes and therefore a weakening in the Dollar but I am sure Janet Yellen and the rest of the Federal Reserve Bank of America (FED) will be keen to see a smooth transistion from the bond buying programme through to the end. If you need to buy or sell Dollars then make sure you keep in close contact with us here at Foreign Currency Direct plc.