Euro exchange rates could improve or decline after paramount meeting

Yesterday saw a significant rise in how much one would get for exchanging Pounds Sterling for the Euro – Investors began the selling of the single currency upon the news that not only did Spanish, German and overall Euro services growth slow but monthly and yearly retail sales data also came in under expectation. This saw GBP-EUR levels improve by nearly three quarters of a cent over the course of the day, despite UK services also coming in quite a way below expectation.

Today sees a whole host of potentially market-changing data releases for both the UK and the Euro-zone in particular. The European Central Bank has many short and long term issues to contend with  – many Euro-zone countries, including the formerly strong German economy, have seen growth stutter in recent months. Internal indecision about the best course of action is also not helping and sentiment toward the Euro is not getting any better as a consequence.

This morning we have already seen German factory orders slip to -1.0% and UK house prices (according to Halifax data) growth drop to 8.8% from 9.6% – it had been expected to register at 9.1%.  For the UK, later this morning, we have Industrial and manufacturing production data, which gives us an idea of how much demand there is from us Brits, and those nations we export to, for our goods. The big, big news from noon today, though, will be both the Bank of England interest rate decision, which is expected to remain at 0.5% and forty-five minutes later, the ECB meeting, interest rate decision and press conference. Will the ECB president, Mario Draghi, announce a Euro-style quantitative easing? Depending on the outcome, the Euro’s volatility could either increase or settle. For the latest market reaction, contact your currency broker.

Later this afternoon we also have a flurry of Canadian and American data releases focussing on employment and business conditions, which may add further weight to any effects on the rates of the earlier UK and Euro data, in effect amplifying any negative or positive data from those two regions. Positive US data usually has the knock on effect of weakening the Euro against the Pound.

As for tomorrow, again there is lots of potential for movement in the currency markets as many countries have important data releases due.

In summary, major releases include:

• CHF unemployment rate and retail sales
• DEU industrial production and trade balance
• GBP trade balances
• CAD employment levels
• USD employment levels and earnings, consumers credit change
• EUR Economic and Financial Affairs Council

Please do keep in touch with your currency broker for latest market reaction and make sure you get the most for your money.