This report will examine the factors that could affect exchange rates this week in order to help you stay informed if you need to make a currency transfer. Keep track of Euro exchange rates at the live exchange rates page

Big Week for the Eurozone

With exchange rates to sell Euros close to their best level seen in months this week could be very interesting for the single currency. Tuesday sees the release of Eurozone consumer confidence data and I think this could be rather negative owing to the on-going instability on the continent.

However, in my opinion I think Wednesday will be the biggest day for what will happen to Euro exchange rates. The Eurozone releases August’s Unemployment rate with expectations for 10.9% which has come on since earlier this year.

At the same time perhaps arguably the biggest cause for volatility could be Eurozone Inflation figures, which are also published at 10am. With ECB president Mario Draghi suggesting earlier this month that Quantitative Easing could be increased if inflation falls Wednesday’s data will be key in determining future economic policy for the ECB. With one of the ECB members Nowotny claiming last week that QE is not necessary this helped to strengthen the Euro but to me if inflation falls below 0% this could put more pressure on the central bank to act.

Personally, I think inflation will come out as expected and if so I would expect both data releases to strengthen the Euro so if you have a currency requirement to buy Euros this week you may wish to consider a purchase early in the week.

On Thursday the ECB publishes Monetary Policy Meeting Accounts, which essentially sums up the meeting from last month. It will cover the reasons why there was no change for both interest rates and QE.

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.


Read more articles
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.