With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving Euro exchange rates in or out of your favour.
Today there will be a host of data released concerning the Eurozone economy as a whole, and an insight into its individual parts. Trade data in the form of imports and exports will be published for both Germany and France, and we will also get a look at the overall GDP figures for the second Quarter in the Eurozone.
Yesterday’s release for German Industrial production figures, which came in higher than at expected with 0.5% growth for the year in total can be seen a teaser for today’s release. It suggests that German trade data may echo the gains in the industrial sector, and with Germany accounting for almost 30% of the Eurozone economy, GDP figures for the second quarter could come in even better than the 0.3% growth expected.
This should translate into Euro strength, however, the gains may be short-lived. The Euro weakened at the tail end of last week due to Mario Draghi, the Head of the European Central Bank, trying to talk down the value of the single Currency during his Monetary Policy speech. This caused the Euro to weaken by almost 2 cents against Sterling alone. His view that economic gains are a direct result of a weak Euro means so any positive movements for the Euro will actively be fought against by hints of further Quantitative Easing or interest rate cuts. With financial policy against those looking to sell Euros, I suggest moving on any positive spikes which emerge in your favour today.
For more information on factors that could affect Euro exchange rates call any of our currency brokers on 01494 725 353 or email me directly at email@example.com.
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