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Posted March 15th, 2016 by Charles Purdy

Will CPI figures released today help the euro push?

The euro was another currency with a slow start on Monday, as it remained practically unchanged all day against sterling, and lost a small amount of ground against the US dollar. Most of this weakness against the US dollar was due to investors taking positions ahead of Wednesday’s Federal Reserve meeting, but in terms of any news or data there was nothing to excite the markets.

This morning inflation data in the form of Consumer Price Index (CPI) figures for France are released which are expected to move massively from -1.1% up to 0.3% – a huge step in the right direction for France, and more importantly the Euro area. An hour or so later, at 9am, CPI data will be released from Italy, and this is also expected to improve from -2.2% up to -0.4% – still in deflation overall, but clearly showing that the increase in monetary stimulus is having an impact.

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

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Posted March 14th, 2016 by Charles Purdy

Final inflation figures for Eurozone

Friday was a quieter end to the week for the euro after having a busy day on Thursday. The euro, after making significant gains against the US dollar and the pound on Thursday, was under pressure on Friday as the European Central Bank (ECB)’s most recent policy statement finally hit the single currency and it lost most the gained ground against sterling. Final Consumer Price Index (CPI) figures from Germany came out as expected. These were lower than previously, reinforcing the need for Thursday’s interest rate cut and additional quantitative easing.

This week is certainly not expected to be as busy as last, but on Thursday final Eurozone inflation figures are released. These are forecast to improve dramatically, from -1.4% up to 0.1%. Given the state of the Eurozone economy, however, this figure may not be achieved, which could affect euro markets.

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

Posted March 11th, 2016 by Charles Purdy

Euro moving with the ECB tide

Following days of anticipation, the euro moved with the tide of sentiment expressed by the European Central Bank (ECB) yesterday.

The central bank cut rates, as expected, slashing its benchmark interest rate to 0% and dropping the deposit rate to -0.4%. It also extended its bond purchases by €20 billion, from €60 billion to €80 billion per month. The announcement initially caused the euro to nosedive, as is usually the case when monetary policy is introduced or extended. However, ECB President Draghi detailed that the central bank does not expect to cut interest rates further following today’s round of cuts, news which helped support the euro and saw it strengthen significantly.

Friday sees German inflation data due. Other than that, markets are likely to be absorbing yesterday’s news.

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

Posted March 10th, 2016 by Charles Purdy

Attention on Draghi in the Eurozone today

The euro continued to follow the trend for the week as it weakened for the third straight day against other major currencies on Wednesday. The European Central Bank (ECB) is largely expected to cut interest rates further into negative territory at the …

Posted March 9th, 2016 by Charles Purdy

Euro on tenterhooks before Thursday’s meeting

The euro had a positive day before those gains were erased as investors eagerly await Thursday’s European Central Bank (ECB) meeting. Industrial production data was much higher than the expected figure, coming in at 3.3% rather the forecasted 0.5%. Growth figures in the form of Gross Domestic Product (GDP) measurements were in line with the forecast, at 0.3% for the previous quarter; this had a fairly muted response on the markets. On the whole we have seen limited movement for the single currency this week, almost ending Tuesday exactly where we opened against its major peers.

There is no significant data out from the Eurozone today so most of the build-up will be the all-important ECB meeting on Thursday, including the interest rate decision announcement, closely followed by Mario Draghi’s speech.

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

Posted March 8th, 2016 by Charles Purdy

German factory orders fail to rouse euro

The euro had a very quiet start to the week, as the only piece of data from the Eurozone were manufacturing orders from Germany, which came out marginally better than expected at -0.1%, rather than the forecasted -0.3%. This had almost no effect on the…

Posted March 7th, 2016 by Charles Purdy

ECB under the spotlight today

The euro ended up having a mixed day on Friday by weakening slightly against sterling, but erasing its recent losses against the US dollar. Often US non-farm payrolls data will have a significant effect on the single currency but the opposite seemed to be the case on Friday as it had no effect and the euro strengthened throughout the day. Against sterling the euro pretty much stayed in the same place, with the only data release coming out as expected at 0.1%.

This morning manufacturing orders from Germany are to be released and are expected to increase slightly from -0.7 to -0.5 but still be a negative figure. The main news, however, will be on Thursday as the European Central Bank (ECB) hold their monthly meeting and the subsequent interest rate announcement, with another cut in interest rates to -0.4% expected and, possibly, an increase in their current quantitative easing program from €60 billion per month to €70 billion. Anything less, given December’s anaemic announcement after much huffing and puffing from Draghi, will be very badly received by the “market”.

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

Posted March 4th, 2016 by Charles Purdy

Difficult week for the euro

The euro has had a difficult week despite re-gaining some of the losses against the US dollar and euro on Thursday. On Monday the tone was set for a disappointing week after the Eurozone released data which confirmed that the area fell back into deflation in February for the first time in five months, which has increased expectations for additional stimulus measures to be announced by the European Central Bank (ECB) next week. The reading showed that Consumer Price Index (CPI) data fell to -0.2% after a positive reading in January. The fightback on Thursday began as Purchasing Managers Index (PMI) figures came out slightly better than expected, and retail sales also beat expectations, at 0.4% instead of  the forecast 0.1%.

We are likely to see a slow end to the week in terms of Eurozone data releases. The focus, therefore, is on events elsewhere, such as the US, where labour market data takes centre stage.

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

Posted March 3rd, 2016 by Charles Purdy

A difficult three days for the Euro

It was three poor days in a row for the euro, as it fell again against both sterling and the US dollar. Investors began to sell off the euro again with the likelihood of an interest rate cut and/or another round of quantitative easing increasing; so investors moved back to purchasing sterling as a result. The euro also suffered slightly against the US dollar, but this was down to US dollar strength, with better than expected Automatic Data Processing (ADP) Non-Farm Payroll Data results, which in turn had a negative impact on its biggest trading partner, the euro.

This morning at 9:00 am we have the Markit report for Purchasing Managers’ Index (PMI) data from the Eurozone. There will also be retail sales data released for Europe slightly later in the day. This figure is expected to fall from 0.3% down to 0.1%, which could again create further, unwanted pressure on the single currency.

Things may still get worse for the euro. If you are planning currency transfers from Europe to the UK, contact your trader today for the latest rates and to organise an appropriate currency strategy.

Posted March 2nd, 2016 by Charles Purdy

Further weakness for the euro?

The euro had a disappointing day across the board following mixed data from the Eurozone. Unemployment just beat expectations by falling from 10.4% to 10.3%, with the figure expected to remain flat for last month. Purchasing Managers’ Index (PMI) data did fall, however, from 52.3 down to 51.2. This, coupled with the poor inflation data on Monday, continued to hit the single currency after an impressive run against sterling over the last few weeks. Talk is still very much centred on next week’s European Central Bank meeting and what actions they will take to boost the Eurozone economy.

Today Producer Price Index (PPI) data is out from the Eurozone, but as this is not a major release we can expect a quieter day for the euro. With other markets active we are likely to see the euro fall or weaken on the back of this.

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