EU Leaders met yesterday to discuss the migration crisis that has once again become a main talking point within the bloc. The mini-summit saw countries directly call each other out with the Spanish contingent accusing Italy of being “anti-European”. Uncertainty within the Eurozone is likely to impact the Euro negatively, today's market report below discusses this and the upcoming economic data coming out from the EU which could also impact the Euro.

Currency Pair% ChangeDifference on £200,000
New Lockdowns Across Europe Stiffles the Euro

However, the main subplot which could have a significant baring on the Euro is Germany’s Angela Merkel. The Chancellor’s three-month-old coalition was based around a reduction in immigration and tighter rules, however it’s looking very hard for the Chancellor to maintain her side. Other nations across the Eurozone are less likely to take in migrants with severe budget restraints already and many looking towards Germany to take more, this is creating a domestic battle at home.

If the German leadership once against follows the path of an election then the Euro would certainly weaken as cracks start to appear across the continent. This crisis coupled with uncertainty in Italy could well start to see the scales tip and there could be pressure on the currency.

Busy end to the week for the Euro

The main data for the European Union will come at the end of the week as business climate and consumer confidence data is released on Thursday. The EU sentiment data at the start of the year was close to record highs however in the last 6 months things have progressively weakened. The expectation from the data this week is that there is little evidence that things will change and it’s unlikely the Euro will see much movement from this release unless the unexpected happens.

The main data for the week comes on Friday in the form of the Consumer Price Index. This has been one of the Central Banks President Mario Draghi’s main concern and there is expected to be a slight increase taking the inflation level above 2.0%.

If this week you have an upcoming Euro requirement make sure you’re in contact with your broker. The significance of timing is key when buying currency especially when you consider last week that a £200,000 done at the right time would have achieved you nearly an extra €2000.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

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