A tough week for the Eurozone expected after last week’s Referendum result

After one of the most highly anticipated weeks in years, the euro suffered across the board on Friday – falling against most currencies, including 4% against the US dollar, with the exception of sterling of course! Much of this movement was seen as the early signs that a Leave vote was the most likely outcome of the EU Referendum.

The main worry for the European economy now is a chain reaction, whether this news sets off more referendums for the other nations within the EU. It is hard to see anything but a difficult rest of the year for the single currency, and stability will be number one on the agenda.

This week is expected to be reliving most of what last week brought us, and any direction from politicians in the UK and Europe will be eagerly watched by investors. Flash Consumer Price Index figures from the Eurozone are out on Thursday, and expected to tick up slightly from -0.1% to 0%. This would mean the Eurozone is out of a deflationary period, which may well be seen a small but positive step for the Eurozone after a tough previous week.

If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news and currency purchasing strategies.