Daniel Wright
Sales Director
Euro reaches 4-month low against the pound
Euro falters against sterling as Eurozone’s core inflation data comes in far below European Central Bank target.
Request a quoteTurning to the euro, the pound to euro interbank exchange rose to a four-month high this week. A major reason for sterling’s gain versus the common currency has been the Brexit progress. Meanwhile, the Eurozone’s inflation remains way below target, said official data this week.
According to Eurostat, the Eurozone’s core inflation, which measures domestic price pressures in the currency bloc excluding external factors like imported food or crude oil, reached just 0.9% in August. This is in line with economists’ forecasts, yet stands well below the European Central Bank’s (ECB) target of close-to-but-below 2.0%.
This could be seen as a vindication of the ECB’s recent decision to cut interest rates and restart its extraordinary monetary stimulus, known as Quantitative Easing (QE), to stimulate the Eurozone’s economy.
ZEW sentiment rises, construction output mixed
Meanwhile, other economic releases from the Eurozone this week were mixed. On the bright side, ZEW’s monthly survey of economic sentiment in the currency bloc rose to -22.4 in September, far above market forecasts for -32.2, as well as August’s deeply negative -43.6.
Yet on the other hand, Eurozone construction output fell by -0.73% in July month-on-month, below forecasts for -0.7%, yet rose by 1.1% year-on-year. Elsewhere, looking to the immediate future, the Eurozone’s consumer confidence figures will be announced today. This could affect sterling’s value versus the euro, alongside the shifting Brexit situation.
Markit’s PMIs, EC’s confidence surveys next week
Also, looking to next week, the Eurozone’s key releases will include IHS Markit’s PMIs (Purchasing Managers Indices) for the currency bloc and Germany for September, IFO’s poll of Germany’s business climate, and the European Commission’s survey of business and consumer confidence.
These will tell us if the continent’s households and companies still feel downbeat, as well as an early indication of whether the ECB’s decision to ease monetary policy has improved sentiment.
Read our monthly currency forecast
Download hereNews
L. Aldred
UK
I have used Foreign currency direct on two occasions, both were stressful times for me but Daniel and staff were wonderful. Every step was explained and all queries answered fully and swiftly. I would not hesitate to recommend to anyone for an excellent service.
E. Godwin
Australia
I decided to use this company after reading many blogs by Daniel Wright on the forecast of Sterling. He always seemed to get his predictions right and also seemed to have not only very good knowledge but a passion for the industry he is in. Daniel was not only informative but patient and gave us options on the lead up to our currency exchange.
H. Taylor
France
I only have praise for the way this company make the stressful experience of Forex a simple process. Difficult to be specific but there is always the personal touch. Recently, with the BREXIT hysteria the dealers must have been very busy but Daniel Wright was always available or never failed to ring me when requested.
J. Warnes
UK
A totally reliable and trustworthy service. I have used them on three occasions now and my money has always come over on the agreed date at the agreed rate. Daniel Wright is a pleasure to deal with -patient, personable and professional.