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Posted August 30th, 2013 by Charles Purdy

German data influences euro movements

It has been a relatively poor week for the euro amidst a stream of German data and influential events on the global stage. Tuesday saw the German Business Climate Index reveal a better than expected show of optimism in the Eurozone’s largest economy. The data is strongly correlated to prevailing economic conditions within the Eurozone so the strong figures had a positive effect, but this effect was tempered to an extent by poorer data from Spain and France, detailing greater contraction than first calculated in 2012 and increasing jobseekers respectively. After Tuesday, events elsewhere drove euro performance, with Mark Carney’s mid-week statement boosting sterling performance and developments in Syria sparking movement across the currency markets. The single currency traded down against sterling and the US dollar towards the end of the week, a decline which was aided by negative German data. Monthly unemployment change figures detailed a slight increase rather than the decrease that was expected and inflation data showed no change. In a day of abundant news, German retail data, Eurozone flash inflation figures and Eurozone employment rate data are all being released and further fluctuation is not unlikely. Call your trader now to see how these releases affect euro performance.

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Posted August 29th, 2013 by Charles Purdy

More German data set to dictate euro prices

Eurozone news played second fiddle to influential factors elsewhere yesterday as the escalating situation in Syria and the Governor of the Bank of England’s speech stole the limelight. German consumer sentiment data did not mirror Tuesday’s better than expected Business Climate data, but it is likely that the effect of the survey was diminished by other events. The single currency lost ground in the afternoon against sterling and the US dollar as Carney’s words boosted sterling’s performance and the increasing possibility of an attack on Syria leant strength to the US dollar as risk aversion returned to the market. Another wave of German data is released today, including monthly inflation figures and details of the change in numbers of people claiming unemployment benefits. Both data sets have the potential to influence the performance of the seventeen-nation currency, but equally events elsewhere may again have a strong bearing on how the euro fares in its major pairings. Call your trader now to stay on top of market volatility.

Posted August 28th, 2013 by Charles Purdy

Positive German data helps support the euro

In a week packed full of German data, yesterday saw the Business Climate Index reveal a better than expected show of optimism in the Eurozone’s largest economy. The data is strongly correlated to prevailing economic conditions within the Eurozone so the strong figures had a positive effect. Renewed optimism gave a boost to euro performance as it managed to hold on to gains against the US dollar after some initial volatility and strengthen moderately against sterling. Whilst positivity emanated from Germany, data showed that Spain’s economy shrank by more than anticipated in 2012 and other figures revealed that the number of French jobseekers rose to record highs in July. Following on from these business sentiment figures, today sees the release of German Consumer Climate data. If the positivity amongst German business is mirrored by consumers then we are likely to see some further euro support. Traders will also look to money supply data being released from the European Central Bank to influence performance. Money supply is positively correlated with interest rates; therefore if the data reveals that there are more euros in circulation in the Eurozone than expected, then the effect on the currency will be positive. Call your trader now to see if euro optimism will continue.

Posted August 27th, 2013 by Charles Purdy

German data to dominate headlines in Europe this week

Friday was another positive day for the Euro as small gains were made against both Sterling and the US Dollar. There was little major data that came out of the Eurozone towards the end of the week, although some minor releases such as Belgian business climate data reflected a slightly better than expected sentiment. Looking ahead to this week, we can expect business climate data from Germany to have a more noted effect when it is released this morning. German manufacturing and services data were stronger than expected last week and traders will be looking to see if this will instil more confidence in German business leaders and point towards a sustainable Eurozone recovery. A variety of other economic indicators are due to be released this week from the Eurozone’s largest economy starting with consumer confidence data on Wednesday. This is followed on Thursday by the release of German inflation data, which is likely to have a slightly weightier influence going forwards following the German Central Bank’s comments last week and we end the week with monthly retail sales data. Call your trader now to see if the Euro can build on steady gains.

Posted August 23rd, 2013 by Charles Purdy

Euro fairs well on the back of positivity from Germany

The euro has had a reasonable week thus far as we see more positivity and improved data coming from the Eurozone helping the currency push to a six month high against the US dollar. On Tuesday we saw more upbeat comments from the German finance minister who suggested that not only could growth surpass current expectations in Europe’s biggest economy, but also that forward guidance from the European Central Bank does not rule out future increases in interest rates, which may be needed in order to counteract inflation. These prospects bode well for the single currency and were bolstered yesterday by better than expected German data showing moderate growth across the manufacturing and services sectors. This was perhaps counterbalanced to a degree by worse than expected data from the Eurozone’s second largest economy, as French manufacturing and services data came out worse than expected and showed contraction in both sectors. Overall the seventeen-nation currency has seen some volatility during the week, but net movements have been moderate. Today business climate data is released from Belgium which may have a minor bearing on performance through the day, but aside from that there is little data of note being released ahead of next week. Call your trader now to see if the euro can begin a more sustained recovery.

Posted August 22nd, 2013 by Charles Purdy

Europe awaits influential PMI figures

Yesterday had little of note to speak of for the euro, as no data came out from the Eurozone to make any drastic changes to strength of the multi-nation currency. The major shift was seen as losses against a strengthening US dollar before the release of the FOMC meeting minutes, while against the majority of partners little change was seen over the course of the day. First thing this morning we have influential manufacturing and services Purchasing Managers’ Index (PMI) figures out of France and Germany, two of the major economic forces in the Eurozone as well as the overall figures for Europe as a whole. Positive results have the potential to have a big effect on the strength of the euro. At the same time, important data from around the world could still impact the euro. As such, it promises to be an interesting day for the euro, so get in touch for a live rate.

Posted August 21st, 2013 by Charles Purdy

Euro reaches six month high against the US dollar

On what was a relatively quiet day for data releases we saw the euro post gains amongst most of its major trading pairs peaking at a 6 month high against the US dollar at 1.3455. Some of this strength may be accredited to comments from the German finance minister who suggested that growth in Europe’s powerhouse could surpass current expectations. We must also look at forthcoming events; a likely reason is the end of the euro-zone’s technical recession in the second quarter and may give reason for the ECB to actually consider raising interest rates a lot sooner than expected. This possible rate rise was spoken about on Monday in the Bundesbank monthly report and the market reacted well to it despite the President of the ECB’s recent negative comments. Another factor could be rescheduling of Greece’s debt. Concern has been expressed recently by German and French officials over the ability of Greece to keep up with its payment schedule, although they are suggesting a drastic cut as before. Although any succession may well be seen as positive for the euro. Today, we have no data with the highlight of the week being Thursday’s Purchasing Managers’ Index (PMI) data release a figure above 50, is considered euro positive. Call in now for the latest update on the euro.

Posted August 20th, 2013 by Charles Purdy

German central bank provides a boost for the Euro

The euro performed well yesterday on the back of comments made by the German central bank (the Bundesbank) regarding future interest rates. The bank opined that forward guidance from the European Central Bank does not rule out future increases in interest rates, which may be needed in order to counteract inflation. This, along with more optimistic economic projections from the Eurozone’s largest economy caused the single currency to strengthen against the majority of its peers. Today sees the release of German Producer Price index data, a key inflation indicator. Given yesterday’s comments the inflation data is likely to have a slightly magnified impact and may cause volatility should figures differ from expectations. Call your trader now to see if euro fortunes can continue to improve.

Posted August 19th, 2013 by Charles Purdy

Euro holds its own against the dollar

The euro held above the 1.33 level against the US dollar on Friday, but lost a little ground against sterling in the absence of much influential data being released. Inflation data came out largely as expected whilst the current account figures showed a much lower surplus of funds than had initially been anticipated. It is a fairly quiet week on the data front in the Eurozone with little data of note released until Thursday when we will see the highly influential manufacturing and services Purchasing Managers Index (PMI) data released across Europe. The other main release will see the final GDP reading for Germany on Friday and the markets will hope for more positivity following last week’s better than expected GDP figures from Europe as a whole. Call your trader now to see how the euro is reacting and to get a live price.

Posted August 16th, 2013 by Charles Purdy

Eurozone data better but not great

It has been a mixed week for the euro as it performed moderately against the US dollar, trading within a narrow range, yet reached six-week lows against a resurgent sterling. This mediocre performance came despite some more encouraging data coming out of the Eurozone. GDP data revealed growth of 0.3%, which was very marginally higher than what was expected after six consecutive quarters of contraction. However, although this is certainly a step in the right direction the road to normality will be long and hard. Similarly, whilst German Economic Sentiment data was better than expected earlier in the week, it too failed to give the seventeen nation currency much of a boost. Recovery in the Eurozone has been slower and less convincing than in the US and more recently the UK. Whilst recent German data has been markedly improved and French data has been more upbeat, the rest of the Eurozone has given little cause for optimism. This morning sees the release of current account data – detailing the difference in value between imports and exports – and inflation figures which both have the potential to cause some volatility, however euro appreciation is likely to be relatively limited as long as most of southern Europe remains mired in recession and unemployment rates remain at record highs. Call your trader now to see if more consistent data can boost euro performance.

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