Euro weakness continues

Yesterday saw a continuation of Euro weakness, which will be surely welcomed by those of you who are looking to buy Euros. In what has been a very quiet week in the way of any notable data for the pound or single currency, and following Draghis bearish comments on Monday we have seen the Euro continue to slip against the pound and we are now seeing rates that bar a spike in 2012 have not been seen since 2008.  It is certainly a fairly torrid time for the Euro and this is largely due to its own performance as opposed to any particular strength from the pound.

No one really expected this shift despite the Scottish no vote and this has occurred as mentioned largely due to the weak Euro.

This is highlighted as whilst it loses ground against GBP, USD has been strengthening against the pound, aided yesterday by a reduction in US jobless claims which saw the greenback gain around 40pips throughout the day’s trading. Furthermore against the Dollar we now see the worst rates in almost a year for selling Euros.

Today we have no major data from the UK or Europe so it is likely to remain range bound throughout the day’s trading. We have USD Q2 GDP figures in the afternoon which is a key release and one to watch as an unexpected result here could certainly swing the majors’ rates. It is also worth noting that the current strong USD doesn’t help the Euro as investors will be looking at moving money out of the currently underperforming Eurozone and into the USD and the US “safe-haven”. That said a poor result could indeed swing it the other way and despite the lack of data we may see the GBP/EUR rates trickle down- certainly one to watch.

If any of you reading this have any upcoming requirements for any currencies but particularly Euros you would be well advise to speak to your Currency Index broker today. We can help you stay well informed and well ahead of the market.