This Euro update examines the factors that have the potential to effect your euro transfer over the coming weeks. The below table below shows the difference in Euros you would have achieved when buying £200,000 over the past week.

Currency Pair% ChangeDifference on £200,000
GBP/EUR1.6%€4,900
Strong German Industrial data after four months of decline

European unemployment increases

Yesterday saw the release of European unemployment figures and we witnessed a slight increase from 9.2% up to 9.3%. This did not have a huge impact on Euro exchange rates however as many of our regular readers will be aware unemployment in the Eurozone is still a key concern.

Unemployment in Greece sits at a whopping 23.1%, Spain 18%, Cyprus 12.9%, Italy 11.5% and France 10%. When you compare this to Great Britain sat at 4.6% then it does appear there are still to be further problems and complications for the Euro during their revival from economic problems. I still feel that the Eurozone problems are due to hit the headlines again sooner rather than later, and with this we could be due for another period of Euro weakness should this arise.

Eurozone economic data out this week

We have lots of data out this week for the Eurozone starting with inflation data out this morning at 09:30am.

Tomorrow does appear to be a little busier for economic releases where we have lots of different services PMI releases from 08:15am through to 09:00am for most of the Eurozone nations. Later on tomorrow morning we will also have European Retail Sales data out at 10:00am and expectations are for a slight drop off. Should we see a drop off in Retail Sales coupled with some Sterling positive movement due to the U.K inflation report hearings then I would not be surprised to see GBP/EUR exchange rates creep up to and test the 1.15 level in late morning trading.

Thursday is fairly quiet for data in the Eurozone which leads us into Friday where we have import and export data released, both at 07:45am which will more than likely set the scene for the Euro for the rest of the day.

As mentioned earlier in the report I feel the Euro may have a tougher week this week so a test of 1.15 and above would not be out of the question in my opinion.

 

For more information on how future data releases could affect your Euro 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.