In today's Euro report we look at how the Euro could be affected by the upcoming Purchasing Manager's Index data, along with the other factors currently in play like uncertainty surrounding whether or not the SDP coalition can be finalised. The table below shows the difference you could have achieved when buying £200,000.00 during the high and low points of the past month.

Currency Pair% ChangeDifference on £200,000
GBPEUR2.51%€5640

All Eyes on Germany

Yesterday the German ZEW economic survey showed a mixed result, and softened the Euro ever so slightly after a quiet Monday for the Euro on the markets. The Euro has been treading carefully of late over renewed German political concerns.

Although the German economy is expected to improve in the next six months, despite a slight drop in investor confidence throughout February. This is likely to be due to concerns of the coalition Government which is still be agreed properly. 463,723 Social Democratic Party members have until March 2nd to decide whether to enter another grand coalition government. Although many are confident that the coalition government will be formed, I would still expect this to create some volatility for the Euro in the up and coming weeks.

All Eyes are on Germany

Eurozone Flash Composite PMI’S

This morning Markit’s flash purchasing manager’s index is going to be released and is expected to slow a slight easing from the 10-year highs that January posted.

Although a drop is expected, the figures still show expansion within the bloc and support the view from many analysts that Eurozone growth is really gaining momentum.

Today could pose an interesting day for the Euro. Although a slight drop is expected, if this figure is less than the expected drop the Euro has the capability of strengthening due to hopes that the European Central Bank will tighten its monetary policy sooner by investors. A data miss could cause the Euro to weaken.

EU chooses new European Central Bank Vice-Chair, will this affect the Euro?

Eurozone finance ministers chose Spanish Economy Minister Luis de Guindos to succeed Victor Constancio. This is likely to boost the chances of a German becoming head of the ECB next year according to reports. Jens Weidmann, German Bundesbank Governor is tipped to be the next head of the ECB, who is in favour of tightening the ultra-loose monetary policy at present.

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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