020 7898 0500On what was a relatively quiet day for data releases we saw the euro post gains amongst most of its major trading pairs peaking at a 6 month high against the US dollar at 1.3455. Some of this strength may be accredited to comments from the German finance minister who suggested that growth in Europe’s powerhouse could surpass current expectations. We must also look at forthcoming events; a likely reason is the end of the euro-zone’s technical recession in the second quarter and may give reason for the ECB to actually consider raising interest rates a lot sooner than expected. This possible rate rise was spoken about on Monday in the Bundesbank monthly report and the market reacted well to it despite the President of the ECB’s recent negative comments. Another factor could be rescheduling of Greece’s debt. Concern has been expressed recently by German and French officials over the ability of Greece to keep up with its payment schedule, although they are suggesting a drastic cut as before. Although any succession may well be seen as positive for the euro. Today, we have no data with the highlight of the week being Thursday’s Purchasing Managers’ Index (PMI) data release a figure above 50, is considered euro positive. Call in now for the latest update on the euro.
