020 7898 0500Friday showed a disappointing end to the week for the euro as it lost ground against both the US dollar and sterling. This was down to impressive US non-farm payrolls data, which saw the euro suffer against its major counter partner, the US dollar. Overall though, last week was fairly positive for the euro, and after the initial shock of the Brexit, vote the single currency has managed to find its feet again.
However, this may be short lived as there does seem to be some significant problems for the Italian banks, who did not restructure their balance sheets post the financial crisis, being able to establish acceptable levels of capitalisation. Discussions between the European Central Bank and the Italian government are on-going but they seem far apart on the best way to deal with the problem and any crisis will dwarf that seen in Greece.
This week is fairly steady on the data front with some key releases out during the week. Up first is consumer price index (CPI) data for Germany, which is expected to continue to show a small improvement from 0% to 0.2% out on Tuesday. The main release will be saved until Friday however, with CPI figures for the Eurozone anticipated to fall from 0.4 down to 0.2 – and this would be a turn for the worse for the single currency after the increase in quantitative easing back in February.
If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news and currency purchasing strategies.
