Wednesday saw the euro lose ground against both sterling and the US dollar. The earthquake that hit Italy may have contributed to a weakened European economic sentiment, but the weakening of the euro is likely caused by continued strength for both sterling and the US dollar. The euro lost over 1.5 cents throughout the day against sterling, reaching a three-week low, whilst losing half a cent against the US dollar.
This morning will see the release of German Information and Forschung (Ifo) business climate data, a highly respected indicator of German (and therefore European) economic health due to its large sample size. Forecast to improve marginally on last month at 108.5, the euro could see further weakness if expectations aren’t met and this figure falls short.
If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news and currency purchasing strategies.