The euro had a mixed day on Tuesday. There were initial gains against sterling due to a significant improvement in Spanish unemployment figures, in addition to Eurozone inflation figures coming out a long way above their expected figure. As per the past few weeks, however, significant data from the UK overrode the initial gains from the euro, and by the end of the day’s trading levels had returned to GBP/EUR 1.1850 once again – mostly due to the release of a strong UK Construction PMI figure.
Wednesday sees a raft of Eurozone data released, with PMI data figures from Spain, Germany, France and Italy expected. We expect little change or movement, however, as all expectations suggest fairly static outcomes compared to previous months. As always, companies interacting with the euro need to keep a wary eye on developments in the UK, as any significant UK news will have a knock on effect on the euro.
If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news and currency purchasing strategies.