020 7898 0500It was a relatively sedate affair on Friday for the eurozone, so let us take some time to chart the euro’s movements against sterling and the dollar since the turn of the year shall we? Remarkably, if we look at 1 January until the present day, we will see that there is practically no difference between the euro and sterling. Obviously there has been movement in both directions, but ultimately, the range is to tight as to be practically imperceptible over the seven or eight weeks since the turn of the year.
It is a different story against the greenback, as the euro has gained almost five cents this year. That amounts to a significant amount of potential losses if you have no currency risk management strategies in place. It is also worth mentioning that with the European Commission set to meet next month, we could see some volatility between the single currency and pound as we could learn more about future trade relations between the EU and UK.
Today we will see the eurozone’s construction output for December and tomorrow we will see the GfK consumer confidence for March. We will also see the German ZEW economic sentiment for February which is said to be a leading indicator of the German economy. To conclude a busy Tuesday, we will also see the consumer confidence flash reading for February.
