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Similarly to the UK, the Eurozone may not see many drastic changes in its trading levels as a result of economic data. One of the few volatility-influencing releases this week is that of the GDP for Q2 on Wednesday.

2019 has seen Eurozone GDP figures rise and fall gently usually by 0.2% with the latest figure dropping from 0.4% to 0.2%. A study undertaken by Bloomberg News found that it is expecting figures to remain unchanged.

However, continual strain on the economy has meant that Bloomberg are predicting a 100% chance of a 10-basis point (bps) interest rate cut by the ECB in September and an 82% chance of a 20bps cut by the end of the year.

With previous economic inflation forecasts already slashed to 1.3% by the European Central Bank (ECB) off previous estimations of 1.5%, the Eurozone may see further disappointment as Brexit negotiations at a stalemate continue to create further uncertainty in the currency markets.

From Sterling’s perspective, with Brexit negotiations a few days away from being within a six month deadline, the prospect of finding support looks bleak.

Boris’ aim to scrap backstop halts further talks

Much of slowdown in Brexit negotiations can be attributed to newly elected PM, Boris Johnson who has made it very clear to the public and, in particular, the EU that he will not negotiate further towards achieving a trade deal unless the Irish backstop is scrapped.

As a consequence of this, very little has progressed since this bold statement was made and has elongated this state of political limbo which continues to wane on the economies of both sides.

For clients holding Euros, it could be worth a quick chat with us at FCD to discuss your situation in more depth. The number to try is 01494 725 353.

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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.