020 7898 0500The single currency started the week by seeing depreciation in a number of major pairings. The euro’s slightly poorer performance was caused by unimpressive Consumer Price Index (CPI) figures and subsequent comments and speculation. A measure of the change in prices of goods and services purchased by consumers in the Eurozone, the CPI is a key indicator of overall inflation and low figures – such as the 0.8% published yesterday – and is contributing to mounting pressure on the European Central Bank (ECB) to act as worries over Eurozone deflation increase.
Conversely, better-than-expected German Business Climate data played a role in limiting single currency losses. These figures are derived from a survey of manufacturers, builders, wholesalers and retailers in the Eurozone’s largest economy and revealed the highest levels of optimism in over two years when they were released yesterday morning. There are fewer data releases due out today, but continued speculation concerning ECB action in wake of yesterday’s inflation data may continue to provoke volatility. Additionally, the results of the European Commission’s tri-annual Economic Forecasts may also serve to hamper or enhance investor confidence depending on what they divulge.
Wondering whether to buy or sell euros given these latest updates? Contact your trader for live rates and to inquire about currency-purchasing strategies designed to help you minimise risk and save money on currency conversions.
