Recent business sentiment reports for Germany, France and Italy point to a slowdown in economic output in the Eurozone, this market report looks at the potential impact of this, and other political factors on the horizon, on the Euro. The table below shows the difference in Euros you could have achieved when buying £200,000.00 during the high and low points of the past week.
|Currency Pair||% Change||Difference on £200,000|
The Eurozone economy has endured a sluggish start to the year so far and weak business sentiment reports from Germany, France and Italy, effectively the driving force behind the Eurozone, all pointed to a slowdown in economic output, effectively signalling that growth within the Eurozone may have reached its capacity.
The Eurozone economy’s growth was in fact one of the best of last year, however a strong Euro mixed with fears over a trade War between China and the United States have all contributed to a slowdown, according to the latest survey released yesterday.
The biggest concern yesterday was that the German IFO report fell for the fifth consecutive month in April to the lowest level in almost a year. As the engine behind the Eurozone, a drop off in this economy can often result in Euro weakness.
Italy’s centre left Democratic Party or PD said yesterday that it would be willing to open collation talks with the anti-establishment 5 stay party if the party breaks its alignment with the centre right party.
So far the seven weeks of stalemate has resulted in business confidence stalling, and was sighted on the business reports covered in my previous section as the main reason for the lack of business confidence in yesterday’s surveys. This leads me to believe that any breakthrough in these talks is likely to feed through into Euro strength, although I wouldn’t be holding my breath for a quick turnaround.
Away from regular economic and political news, the French President Emmanuel Macron met with President Donald Trump. As the deadline for the Iran deal looms, reports have suggested that Macron has been sent to the White House in order to sway Trump to avoid any rash decisions.
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.
Amazing Customer service. Great spot rates & reliable transfers
Excellent service and very efficient and easy process.
I have used Foreign Currency Direct for many years and always helpful, polite and good rates according to the market. Easy transactions and seamless service