Spanish Elections Weaken Euro

A very quiet week on the markets continues today, with little data of note out in any of the major zones. There are a number of low key US releases, the Canadian interest rate decision and the backdrop of a G7 meeting to try and keep the markets busy, as well as a resumption of talks between Greece and its creditors.

In short not a great deal of interest and as a result the market will continue to be driven by current trends – strong US Dollar off the back of recent positive data, strong Pound off the back of recent positive data and still feeling the support of a decisive election result, and a weak Euro suffering because of fears over a possible Greek exit and most recently the surprising performance over the weekend of the anti-austerity Podemos party in local elections – could Spain’s political future be heading down the same road as the Greek’s?

Tomorrow sees a little more action, with lots of low key data due out from the major zones, with the highlights in the UK being a Nationwide House Price Index and most importantly UK GDP. Last time out, GDP came in below expectations and the Pound dropped as a result, could this happen again? If so could this reverse the current trend pattern?

Rates are currently only just below the recent eight year highs we saw for buying Euros, so for those of you with an upcoming Euro requirement things are looking good – however it is worth considering booking your rate now, while we are so close to those highs, because a low GDP figure tomorrow could be all it takes in a quiet market to cause a storm, with the Pound the likely loser.