German Retail Sales published yesterday saw a big improvement compared to the expectation with data showing 3% change year on year compared to the prediction of 1.5%. Today's Euro report takes into account recent economic data from Germany alongside the rest of the EU. The table below displays the range of exchange rates for the past 30 days, showing the difference in return you could have achieved when selling £200,000.00 during that period.

Currency Pair% ChangeDifference on £200,000
GBPEUR2.2%€5,050

Germany is the leading economy in the Eurozone so any positive signs would usually result in Euro strength and this was demonstrated during yesterday’s trading session with the Euro gaining vs both the Pound and the US Dollar.

Eurozone Unemployment data also showed an improvement and this has been going in the right direction for a number of consecutive months now.

Germany strong but who else?

However, all is not rosy on the continent with Eurozone GDP data showing a small drop to 2.1% compared to the predicted level of 2.2%. This was counter balanced by an upturn in Eurozone inflation and provides support for the European Central Bank’s decision to announce an end to Quantitative Easing by the end of the year.

One problem that the ECB faces is the question surrounding when they will be able to look at starting to raise interest rates again. Although inflation was measured at 2.1% which is above the target as Eurozone GDP data showed a small decline then this may put a rate hike off the agenda for quite some time to come. Longer term the ECB will focus on both growth as well as inflation levels before deciding what to do in the longer term but with GDP also showing a fall from the previous quarter I cannot see the central bank raising rates at any point this year.

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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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.