Growth within the Eurozone is staging a recovery but what tone will Draghi take in his latest speech this afternoon? The below table shows exchange rate movements for GBP/EUR within the last month.
|Currency Pair||% Change||Difference on £200,000|
The Euro made gains against Sterling yesterday and pointed towards a continuing recovery in the Eurozone after GDP (Gross Domestic Product) figures for the first quarter of this year showed a growth of 0.5%. GDP for the last quarter of 2016 was also revised upwards from 0.4% to match this.
This also showed that the Eurozone was one of the strongest economies in this time period, compared to the UK at 0.3% and the US at 0.2%.
Reports that the UK could face a Brexit Bill of €100 billion instead of €60 billion also helped the Euro to make inroads of around half a cent against Sterling yesterday morning.
However, Producer Price Index (which measures change in prices received by domestic producers of goods and services) was released at 3.9%, much worse than the previous year’s reading at 4.5% and the expectation of 4.1%. This negative data stopped the Euro from making considerable gains against the pound, however still provided a good opportunity for our well informed clients to take advantage of.
Emmanuel Macron and Marine Le Pen went head to head during the historical live televised debate last night ahead of the French Election on Sunday, and as expected there were fireworks. The debate lasted two and a half hours and topics included terrorism, the future of the Euro and Europe, although most of this time was spend with the pair over talking each other. A snap opinion poll afterwards saw Macron in the lead with 63% of viewers finding him more convincing than Le Pen – but it really could still go either way on Sunday.
This morning at 9am Markit will be releasing the Purchasing Managers Index from the Manufacturing and Services sector for April. This is where top business executives respond to questioning on their future expectations of their business expenditures. ECB President Mario Draghi will also be speaking this evening at 5.30pm.
Whenever Draghi speaks the Euro becomes volatile against its counterparts, therefore clients looking to buy Euros may wish to move ahead of this announcement, or get in touch with your Account Manager on 01494 725353 so they can help you to make plans for your future purchase.
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