Positive vibes came out of the Eurozone today as the jobless rate fell below 10% for the first time since 2010. This came as a surprise to Eurostat, the organization responsible for the figures, who had undervalued the ECBs consistent push to drive economic growth within the single market. By continually cutting its interest rates and extending its Quantitative Easing programme, the ECB have made it easier for business to invest, resulting in 178,000 new jobs being created since September.
Furthermore, the European markets were boosted by additional optimism breaking out of the car manufacturing industry with french and Spanish manufacturers boating an increase of 8.5% and 13.5% respectively in new car sales since the 1st of December last year. This could be seen as a good indication that demand within the Euro zone is holding strong despite the ever growing concerns of inflation.
Finally, the Euro showed a brief response to the news that French Prime Minister Francois Hollande will not push for a second term in charge, posting a 0.6% jump against the dollar. Investors are thought to have seen this as n advantage for conservative leader Francois Fillon, who will bring far more stability to the Euro zone than other populist figureheads in contention.
However, these positive stats have done very little to spark the long term revival of the single currency against its major counterparts and I believe the political uncertainty with the zone will bring further woes to those hoping for EUR strength in the coming weeks.
The single currency is still stuck around the yearly lows of 1.05 against the US Dollar and suffered further weakness against the Pound following Brexit ministers speech yesterday afternoon, seeing the Euro drop by 1,3% over the course of the day, from 0.847 to 0.837.
This of course presented a fantastic opportunity for Euro buyers, who, if timed properly, would have had an extra €3200 for a £200,000 transfer.
All those with a Euro requirement should keep their eyes firmly set on the much anticipated Italian referendum this weekend.
Italys vote this Sunday has the makings of being just as threatening to the European Union as the uks leave result in June.
A no vote will see the prime minister Matteo Renzi step down, paving the way for another populist group to potentially take the reins and pull Italy, one of the founding countries of the union, out of the single market.
The polls are suggesting the vote can go either way, with Renzi calling the 4 million illegible Italian voters living abroad to jump into action and support his cause.
With potentially huge implications riding on such fine details, clients with a Euro currency requirement would be wise to seek out their account manager. Alternatively, if you do not have an account with us, call our trading floor on 01494 725 353 or email email@example.com. Set up is easy and you will be assigned your own dedicated broker.
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Very efficient service. I’ve never used a service like this before & was purchasing a house in France. It was all explained very well & I was kept informed all along the process. Putting a deposit down to pre-book the rate also saved us a fortune.