Key week ahead for Euro exchange rates

Last week proved to be a flat one for most exchange rates, but as June heads to a close we now have the usual stream of data releases likely to give us some movement for many currencies.

We saw the Pound drift back a little on Tuesday after Mark Carney’s testimony to the Treasury Select Committee, but recover later in the week, particularly against the US Dollar after American GDP figures showed an unexpected drop on Wednesday.

This week perhaps the Euro will be in focus, as we have a lot of data due out which might indicate whether the ECB’s recent interest rate cut is starting to help flagging Eurozone economies. First up today we have inflation figures at 10am, then unemployment tomorrow, GDP on Wednesday, and retail sales on Thursday, followed by the monthly interest rate announcement and accompanying press conference the same day.

It seems unlikely then that the Euro will get through this week in the same position it started in, but having gained in value last week we are still trading near 2 year highs this morning.

In the UK there is less news due out, with interest rates not due until next week, and no other data of note throughout the week.

The US Dollar continues to be weak after last week’s surprise drop in economic output, and Federal Reserve Chairman, Janet Yellen, gives a speech on Wednesday afternoon, with unemployment, trade balance and non-farm payrolls all due out in the States on Thursday, ahead of Friday’s July 4th bank holiday.