Currency Note Euro

Euro loses ground thanks to positive EU sentiment in the UK

By Ricky Bean May 26th, 2016

The euro lost ground against sterling for the third day in the row yesterday thanks to polls suggesting that the UK will vote to remain in the EU strengthening the British currency. Movement for the single currency against the US dollar was fairly limited, as it remained close to its opening position all day on Wednesday. The only data release of any note was German IFO business sentiment data. This beat expectations, coming out at 107.7 despite the forecast of 106.9, but while the euro showed a slight improvement in the immediate aftermath, these gains were quickly erased, particularly against sterling.

Thursday could see some movement as the Group of Seven (G7) meetings commence. In terms of data for the Eurozone, no major releases are expected for today or the rest of the week, so investors will be looking elsewhere for key releases.

If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news and currency purchasing strategies.