Draghi Rejects Deflation Fears

Mario Draghi used his monthly press conference at the ECB yesterday to allay market fears about deflation in the single currency zone.

There had been rumours that the ECB would cut its headline interest rates to stave off deflationary fears, which would have hurt the Euro and likely given those of you buying Euros better exchange rates.

In the event, an interest rate freeze followed by a bullish speech, gave the Euro some strength and we saw GBP-EUR rates drift lower through the afternoon, following the trend of the last few days. 

The only respite was more good news for the UK economy, where overnight the NIESR has predicted UK growth this year of 2.5%. and called the recovery “entrenched”, a further bonus to the UK economy after Bombardier in Derby was awarded the Crossrail train manufacturing contract.

Today we have the UK’s trade balance figures announced at 9.30 and key Canadian and US employment numbers at 1.30pm. The US non-farm payrolls in particular usually cause volatility for the US Dollar. As for those of you buying Euros, if you are worried about exchange rates starting to fall back, call us for a chat through your options and a live quote for your own order.