The Euro has been going from strength to strength when compared with the Pound as I’ve already covered in this report. But it’s worth noting that the Euro has been gaining vs the US Dollar recently as well, which is perhaps a truer indication of the Euro’s strength, as the US Dollar isnt under the downward pressure the Pound is currently experiencing. The reasons behind this recent bout of strength for the single currency aren’t so clear-cut.
Many analysts are putting them down to recent data coming out of Europe, which has shown that the Eurozone has performed better than it was expected to following the news the UK are to leave the Eurozone.
Additional positive news out of Europe recently is that both Portugal and Spain have been set new fiscal targets by the Eurozone’s governments. Both economies have been struggling as of late and speculation has been mounting that the two would be fined for missing out on their deficit targets, so those fears have been subdued at least for the meantime anyway.
Whilst the feeling in Europe is positive economically at the moment, there are a number of underlying issues that could surface later in future and weigh on the Euros value.
Although Tuesday will offer us an insight into economic sentiment within Germany, I’m still expecting Thursday to be the week’s busiest day for Euro buyers/sellers. Positive sentiment has been boosting the Euro as my colleagues covered in last week’s market reports, so well see if that’s going to continue at 10am on Tuesday. Thursday’s news release will be in the form of CPI (Consumer price Index) and it will offer us an idea of the change in the cost of living in Europe, on both a monthly and yearly basis.
Feel free to contact your broker and ask for updates/outlooks should you wish, our currencies brokers have a wealth of experience and although we don’t offer financial advice, many of our outlooks in these daily market reports have come to fruition so it’s worth your time getting in touch.
The current economic climate being volatile creates opportunities for buyers and sellers alike, call us today to discuss a currency exchange need on 01494 725 353.
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