Trade data released yesterday kept GBP/EUR below 1.20. Will tomorrow's inflationary figures from the powerhouse of Europe push GBP/EUR exchange rates lower? The following table shows exchange rate movements within the last month for GBP/EUR:

Currency Pair% ChangeDifference on £200,000
GBP/EUR2.1%€4800

Positive Eurozone performance keeps GPB/EUR below 1.20

Pound to Euro exchange rates seemed on the brink of breaching 1.20 but fell away once more to the frustration of Euro buyers. The culprit, for want of a better word, was due to individual looks at Eurozone trade data released yesterday. The individual puzzle pieces came together to paint a rosy picture of Euro performance, with French industrial output growth doubling on the previous month, similarly Italian industrial output for the year is set to grow at almost 3%, and in Greece yearly production is expected to rise by 8.7%.

Whilst not staggering numbers, with Italian and Greek economies viewed with severe scepticism since 2015, the news was welcomed by global currency markets as a whole.

Is this is a turnaround for the Euro’s value? Simply put, no. Greek debt restructuring is still ongoing. If markets thought this was a significant piece of news then GBP/EUR would be severely down, likely 1.16 territory.

For now this is more a gentle reminder that larger narratives are not the be-all-and-end-all for exchange rates, and these scheduled economic releases can impact planned transfers. This is exactly what we are here for to assist our customers in navigating.

German growth data and the Euro

From the small economies to the larger, Germany will be in the spotlight tomorrow with the release of their inflation figures and a look at growth in the economy during the first quarter.

This is the second look at German growth during this quarter now that more information has been tallied and expectations are frankly phenomenally high. First growth readings were at 0.4% but are expected to double to 0.7%. Though a paltry percentage these figures represent billions in revenue.

Should this be confirmed you can expect the Euro to end the week on a high note, so any opportunities created by Super Thursday today could well be the best levels to buy Euros this week.

I recommend speaking to your account manager for a live rate of exchange so you can evaluate your position. Our trading floor number is 01494 725353 or alternatively, you can email me directly at jjp@currencies.co.uk.

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.

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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.