It was three poor days in a row for the euro, as it fell again against both sterling and the US dollar. Investors began to sell off the euro again with the likelihood of an interest rate cut and/or another round of quantitative easing increasing; so investors moved back to purchasing sterling as a result. The euro also suffered slightly against the US dollar, but this was down to US dollar strength, with better than expected Automatic Data Processing (ADP) Non-Farm Payroll Data results, which in turn had a negative impact on its biggest trading partner, the euro.
This morning at 9:00 am we have the Markit report for Purchasing Managers’ Index (PMI) data from the Eurozone. There will also be retail sales data released for Europe slightly later in the day. This figure is expected to fall from 0.3% down to 0.1%, which could again create further, unwanted pressure on the single currency.
Things may still get worse for the euro. If you are planning currency transfers from Europe to the UK, contact your trader today for the latest rates and to organise an appropriate currency strategy.