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.
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.
First class foreign currency provider, great rates and outstanding customer service.
Great service very professional but with a personal touch. Everything went smoothly with no fuss. Would highly recommend.
It was really refreshing to go through a process that had absolutely no hiccups at all, the service that we were offered exceeded our expectations. We would unreservedly recommend the company to anyone seeking to exchange currency.
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.