A rail strike in France began yesterday, affecting a vast number of national trains. If this strike continues we could see the Euro affected. The table below shows the difference in Euros you could have achieved when buying £200,000.00 during the high and low points during trading yesterday.
|Currency Pair||% Change||Difference on £200,000|
This morning at 10am there will be the release of Consumer Price Index figures. These will cover the Eurozone’s inflation data and spending trends.
The reason this figure is being highlighted within financial media is because last week, the engine room of the EU (Germany) posted some disappointing inflation figures, leaving many anticipating weaker figures from the Eurozone as a whole.
The Euro softened off the back of this news and has struggled to pick up since, as markets are now expecting a lower Eurozone inflation figure. Interestingly the EUR/USD rate is trading towards the bottom end of its current range (1.22 – 1.25) despite the US Dollar coming under pressure recently. I think that this is worth considering for those of our clients planning a Euro sale in the short-term future.
This morning’s Consumer Price Index figures are expected to show 1.4% for March Year-on-Year and 1.1% for the Core figure. The difference between the two readings is the Core figure excludes volatile components such as food, energy, alcohol and tobacco. Do feel free to get in touch early today if you wish to plan around this event.
Although strikes are more common in France than other Western European nations, I thought it was worth including this particular one in the report as it’s expected to be the biggest since 1995.
The strike began yesterday and it’s being dubbed ‘Black Tuesday’, with staff at state railway SNCF leading it along with energy and waste collection sectors also being affected. Only 1 in 8 high speed national trains are expected to run, with 1 in 5 regional trains operating. Commuters struggled to get into Paris yesterday and there were 260 miles of traffic jams during rush hour yesterday morning in the capital.
French leader, Emmanuel Macron is likely to have his leadership tested through March and perhaps beyond as France’s rail network is being severely disrupted by strikes.
Should these issues continue I do expect the Euro to be affected, although I don’t expect to see a softer Euro until this strike has been going on for long enough for it to severely dent the French economy.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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