The single bloc recorded its best levels from the composite purchasing manager’s index as it jumped to 56.0 from 54.4 in January. The growth has been accredited to strong performances from both France and Germany from a set of closely watched surveys. The surveys are questions on measures such as orders, stocks and hiring to try and give an overall picture of the health of the sector. Any number above 50 signals expansion in the sector and is generally well received by the currency in question.
It seems as though the Eurozone has been moving through the gears in recent months, and questions will now be asked of Mario Draghi when he next speaks of potentially lifting interest rates in the EU, which have been at 0% for some time now.
Today Consumer Price Index figures will be released and is an indication of inflation levels within the Eurozone. Recently, these figures have been showing slight increases however this month’s release is set for a dramatic decline. Could this weaken the Euro?
As it looks almost a certainty that the UK will be leaving the EU, Jean Claude Juncker warned that the UK’s bill for doing so would be very costly.
The EU commissioner added that he would seek payment from Theresa May’s Government to cover future spending that the UK had committed to but would not be fulfilling, due to the Brexit. To add further uncertainty surrounding Brexit, Jean Claude added that future trade deals would take years to negotiate.
Costs have already been placed as high as €60bn per year to be put forward to the Prime Minister when she starts to launch withdrawal talks. A bill of this size could seriously affect GBP/EUR rates. My prediction is for the Pound to suffer once negotiations begin, I would suggest speaking to a member of the team here to make sure that you are covered.
The Euro could be heading for further weakness as Marine Le Pen is set to storm the first round of the French elections. You may benefit from getting in touch with your dedicated broker as this huge political event could have major implications for those buying or selling the Euro. Call us on 01494 725 353 or email me here to find out more.
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