Positive Eurozone data lifts the Euro

The Euro received a welcomed boost yesterday after signs of recovery within the Eurozone were noted. GDP Growth in the final quarter of last year improved from 0.4% to 0.5%, unemployment in December fell to its lowest level since May 2009 and Inflation rose to 1.8%, the highest point in almost four years. This takes the rate of Inflation in line with the ECB’s target of close to 2%, and an increase in energy prices was a key contributor to this.

However, although the ECB’s target has been met, this could cause problems further down the line when goods become more expensive, and consumer spending could be reduced. Nonetheless, the host of positive news allowed our clients holding Euros to take advantage of an almost 1 cent jump, providing an additional £1,000 on a €150,000 repatriation.

Growth forecast report

Today is likely to be a volatile day for Euro exchange rates, with numerous potential market movers. As we speak at 8am this morning, the ECB’s Non-Monetary Policy meeting is taking place, then Manufacturing data is released at 9am and the Growth Forecast Report is published at 10am.

The Growth Forecast from the European Commission will be particularly watched by investors, as this will be key to their investment decisions moving forward. It is also a great overview of the strength of the economy, and if this continues along this week’s trend of positive EU data, we could see further Euro strength.

Looking to tomorrow, other potential impacts for Euro exchange rates include Producer Price Index data released and a speech from ECB President Mario Draghi. With so much political and economic data over the coming days, from both the UK and the EU, it is important that clients looking to buy or sell Euros are kept up to speed with market movements. Detailing your requirements to your Account Manager here will enable us to alert you of any opportunities to capitalise on.

Have you traded with us before? Why not give us a call on 01494 725 353 or email me here to see how much we could save you on a transfer.


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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.