EUR: yet another good day for the euro as it continues to perform well

It was a perfect storm yesterday with some strength in the euro derived from a 0.5% increase in retail sales and weakness in the pound. Ultimately, this led to the weakest GBP/EUR rate we’ve seen in the last nine months.

The euro is currently the strongest performing currency of the year so far, gaining 12.7% against the US dollar. This is likely to continue with plans to scale back their quantitative easing programme and with markets now forecasting less than 50% probability of a final interest rate hike in the US this year.

Looking to the day ahead, we’ll be hearing some German data, which so far has supported the euro very well. The main data piece of note is US employment figures…could we see the euro-dollar rate extend its upward trend even further?