Positive UK Manufacturing PMI coupled with poor EU Manufacturing PMI saw GBPEUR exchange rates rise a cent during yesterday's trading day.
The Euro came under pressure yesterday morning when the UK Manufacturing Purchasing Managers Index showed a huge rebound back to levels not seen since the beginning of the year. This, combined with slightly lower than anticipated Euro Markit Manufacturing PMI data for August, caused the Pound to rally against the Euro to the best levels seen in 4 weeks and provided an excellent opportunity for anyone looking to buy Euros with Sterling.
Further data set for release this morning at 9.30am is UK Construction PMI which is also expected to show signs of positivity and GBP/EUR may break the 1.20 point should this data impress.
The European Central Bank (ECB) may be forced to take further monetary action following from weaker than expected Inflation figures on Wednesday for July. The report showed figures lower than the same month last year, despite the ECB’s best efforts to revive the economy over the last 18 months. The G20 meeting in China on Sunday and Monday will provide a platform for European Commission President Jean-Claude Juncker and European Council President Donald Tusk to discuss the key issues and establish their best forms of action moving forward, with other world leaders.
Economists are forecasting that ECB President Mario Draghi may announce further Quantitative Easing measures at their Interest Rate decision on Thursday by imposing negative interest rates and printing money in further efforts to stimulate growth. This announcement is released on Thursday at 12.45pm and will be keenly watched by investors.
Prior to this key Interest Rate announcement, there is a host of Eurozone data being released next week which has the capacity to create further market volatility. Markit Services PMI data will be released on Monday morning, which will give an indication of the economic performance in the Services sector. Then on Thursday Gross Domestic Product (GDP) figures for the previous month and year are released and will provide an outlook of the goods and services produced by the Eurozone. I would strongly recommend any clients with a pending Euro transfer to be in close contact with their broker here, who can keep you up to speed with market movements and help to time your transfer at the best possible time.
There could be further movements this morning following the UKs Construction PMI. Get in touch with our brokers today if you need to make a currency transfer in the short term on 01494 725 353.
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