Sharp movements in euro rates yesterday can be largely attributed to events elsewhere as we saw sterling move to 16-month highs against the single currency and the US dollar push it back below the 1.37 mark. Strong UK Retail Sales data caused rate movements that suggested there is potential for sterling to push higher against the euro if the current run of positive data continues.
More influential data from the Eurozone is expected out today, most notably in the form of the Flash Manufacturing Purchase Managers’ Index (PMI) from Germany and France. The data, due out this morning, is a key indicator of economic performance in the manufacturing sector and can have a considerable bearing on the short term performance of the single currency. An index of greater than 50 indicates expansion in the sector, whilst anything below 50 indicates contraction. Figures for France and Germany are forecast to come out at around 51 and 54 respectively. Results significantly different from these are likely to provide a stimulus for rate movement.
Looking to buy or sell euros? Contact your trader now for live rates, news and currency-purchasing strategies.