Jean-Claude Junker’s admission

On Sunday, in a radio interview at Deutschlandfunk Jean-Claude Junker, European Commission President confirmed rumours he would not be seeking a second term when his five-year term expires in 2019. Further adding he believed Britain had the potential to “divide the European Union’s 27 remaining members” by offering each member a unique and tailored deal. Any weakening in the apparent strength of Europe’s negotiating power or stance could lead to a significant increase in GBP/EUR rates and substantially affect any EUR related currency transfers you may have.

Economic data releases this week

This week promises to produce a flurry of data releases and speeches for the Eurozone and its individual economies, many of which have the potential to significantly drive Euro rates in either direction.

On Tuesday at 10am we have the release of the overall Eurozone Gross Domestic Product (GDP) for Q4, Industrial Production and Economic Sentiment figures. Later in the week we have a number of influential meetings, Wednesday bringing the Eurozone’s Non-Monetary Policy ECB Meeting, beginning at 8am. Thursday we have the ECB Monetary Policy Meeting Minutes at 12:30pm and EU Leaders Summit which starts at 4pm.

Early on Tuesday we have two of the most significant data releases for the ‘engine room’ of the Eurozone, Germany. At 7am on Tuesday we have Consumer Price Index (and its Harmonised counterpart) alongside Gross Domestic Product (GDP) for Q4 released.

If Germany’s published Consumer Price Index (CPI) figures on Tuesday are strong and close to the ECB’s inflation target of 2% we may see further strain placed on Mario Draghi to bring the €2.3 trillion bond-buying program designed to stimulate the Eurozone economy to an end. With both CPI and GDP figures released early, before trading commences on Tuesday if you have a Euro requirement it may be worth contacting your broker here at Foreign Currency Direct today who can help you set up automatic orders to take advantage of any market movements that may occur outside of trading hours.

The complexities that surround the Brexit make it difficult to predict which way exchange rates will sway. You may consider a contract option with Foreign Currency Direct to limit risk as we approach Article 50. Call us on 01494 725 353 or email me here to find out more.


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