Daniel Wright
Sales Director
Mixed economic data keeps Euro stable
German growth figures released today following a mixed bag of data for the Eurozone this week.
Request a quoteYesterday we had mixed economic data from the Eurozone, mainly in the form of PMI (Purchasing Managers Index) from across the Eurozone. More on economic date releases for this week in the Euro report below; we've shown in the table the range of GBPEUR exchange rates for the past week and the potential difference in Euros you could have achieved when selling £200,000.00 during the high and low points.
| Currency Pair | % Change | Difference on £200,000 | |
|---|---|---|---|
 GBP |  EUR | 1.3% | €2,950 |
The data was fairly positive for Germany and France however showed a slight drop off in the Eurozone as a whole, which suggests that other economies are failing to keep up with the pace and this may lead to a headache for the European Central Bank.
ECB Member Weidman in fact commented yesterday that he feels it is time that the European Central Bank looks to exit their current ‘expansionary’ economic policy and that ending QE (Quantitative Easing) is merely the first step.
Weidman was basically pushing for the ECB to start to seriously consider raising interest rates, and this is understandable with the U.S and now the U.K actively on the increase the ECB does stand the chance of starting to fall behind.
For those looking to buy or sell Euros in the near future any change in stance regarding rates and a higher likelihood of a rise may lead to the Euro gaining strength.
Personally, I do not feel that the ECB are in the right position to be able to do this as it stands, the gap between the top performing economies (for example Germany and France) to those that are not performing as well (Greece and Italy) is still too wide.
Until they can have everyone in line and in the position that a rate hike would not cause larger problems for the lesser performing economies I cannot see any progress just yet.
The ECB have been known to surprise us however, so do be wary that at the next ECB monetary policy meeting on 13th September could throw up a little volatility.
German growth figures today
This morning we had the released of German GDP (Growth) figures and they came out exactly as expected, with solid Quarter 2 figures of 0.5% growth, the Euro is a little stronger this morning due to this.
For the very latest movements or an up to date exchange rate for GBP/EUR feel free to contact us today on 01494 725353 and we will be more than happy to keep you up to date with the very latest action. You can also email me directly for more information at djw@currencies.co.uk.
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