020 7898 0500The Eurozone received a partial boost yesterday as Germany came to an agreement on the formation of a coalition Government. The news did not impact hugely on the single currency but gains were made against the US dollar. The currency weakened sharply against sterling in response to UK GDP figures. The euro did however reach new highs against the Japanese Yen. Whilst the German elections were not weighing heavily on the currency markets, instability – such as that seen when the Italy faltered in forming a Government – can cause weakness. In addition, German Consumer Climate data came through slightly higher than predicted. Today is the busiest day of the week for the euro as we await preliminary inflation data and unemployment figures from Germany, before seeing the Spanish House Price Index and Italian 10-year bond yields. Call your trader now to stay on top of euro movements.
