On Tuesday we will see a number of economic data releases from the EU, followed by inflation data on Wednesday. This could cause some volatility in the Euro and may offer insight into the ECB's future monetary policy decisions. The table below shows the difference in Euros you could have achieved when buying £200,000.00 during the high and low points during the past 30 days.

Currency Pair% ChangeDifference on £200,000
GBPEUR2.2%€5,050
European Central Bank statement and Inflation report

Eurozone set for further improvements?

The latest report from the European Central Bank has suggested that although growth appears to be slowing it is not causing too much concern and the ECB sees little impact going forward in terms of policy change.

Growth is predicted to start improving after a fairly slow start to the year and as yet the ECB have not declared what they are likely to be doing with their current QE programme.

Tomorrow morning we could see a huge amount of movement for the Euro against both the Pound and the US Dollar as there are a number of economic data releases to watch out for.

We begin with the release of Eurozone GDP data which is expected to show growth of 2.5% and at the same time Industrial Production data for March. Both will give us insight into how the Eurozone is performing and this could provide evidence as to how the ECB will react at their next meeting.

As already covered the central bank do not appear to be too concerned with what is happening with growth at the moment so if the data comes in line with expectation or is increased we could see the Euro strengthen so make sure you keep a close eye out on the markets tomorrow morning as we could see a lot of movement for GBPEUR exchange rates.

Eurozone Inflation to influence Euro exchange rates

On Wednesday the Eurozone will announce the latest set of inflation data at 10am. Core inflation is expected to come out at 0.7% which is relatively low and this is one of the reasons why the ECB have continued with their current QE programme.

If we see any improvement in the rate of inflation this could encourage the ECB to think about ending their QE programme which is currently set to end in September. However, only recently ECB president Mario Draghi did suggest that they will continue it ‘if necessary.’

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.