German confidence give helping hand to the Euro

With a quiet start to the week on UK and Euro data, the markets continued to trade within recent boundaries with the pound largely consolidating against most major currencies following last week’s movements. GBP/EUR rates started the week with losses as positive figures for German business confidence gave a small boost to the Euro. This however did not last the day as US traders sold off the Euro in the afternoon trading (GMT) subsequently allowing GBP/EUR rates to recover to a 1 week high, hitting the current peak of resistance that held firm. With this in mind it is likely that we will not see better GBP/EUR rates over the coming days unless Thursday’s GDP figures can provide some further support for the pound. Sterling also recovered a cent against the increasingly strong dollar, providing a good buying opportunity when you consider the recent negative movement. Today sees another quite day for data with only mortgage approvals figures announced for the UK at 9:30am, and a mix of US figures this afternoon starting at 1:30pm and including consumer confidence, durable goods and new home sales. Whilst the markets are stable, anyone with a requirement to send money abroad this week may wish to consider fixing your rate today before the gamble of major data releases takes over the rest of the week. Don’t forget that if you have any requirements for sending money aboard speak with CI account manager today.