Currency Note Euro

Poor data doesn’t undermine the euro

By Smart Currency November 5th, 2013

The euro had a quiet start to the week and did not see any significant movement against sterling. The seventeen-nation currency did fall to a six-week low against the US dollar, before making a modest recovery later in the day. Both Italy and Spain produced manufacturing data that was marginally worse than expected, however both sets of figures did reveal growth, albeit minimal, in each Southern European state which had, if anything, a positive impact on single currency strength. Thursday’s rate decision from the European Central Bank is likely to be the most influential event this week in terms of euro performance as investors wait to see if interest rates are lowered to record lows of 0.25%. First thing this morning, Spanish unemployment figures came out much worse than expected showing unemployment rose by 87’000 in October. Additionally, the European Commission are today set to release their triannual economic forecasts, which may have increased importance given their proximity to the rate decision. Call your trader now to mitigate the risk posed by expected euro volatility.