Euro exchange rates improve again

Yesterday saw rates for buying Euros improve over the course of the day, after official figures showed prices in the single currency bloc fell in the year to February, otherwise known as deflation.

Deflation is particularly dangerous, as falling prices discourage consumers from spending, which can bring economic activity to a halt – the last thing the fragile economies of the Eurozone need right now. So we saw the Euro weaken slightly, keeping exchange rates for those of you buying in the single currency area very healthy indeed. This was despite better than expected unemployment figures across the Eurozone as a whole.

Earlier, the Pound had fallen on the back of poor consumer credit figures, but this was soon overshadowed by the European deflation headlines. Against other currencies however, we did see the Pound fall back, losing half a cent against the US Dollar for example.

All quiet on the data front

Today we have almost no economic news of note released in the UK, USA or Europe. This morning’s Australian interest rate decision was expected to be a cut from 2.25% to 2%, but the Reserve Bank of Australia surprisingly kept interest rates on hold. This led to AUD strength, in other words giving lower rates for sending money to Australia, the rate for GBP-AUD falling 1.5c at the time of the announcement at 3.30am.

The only other figures due out today are Swiss and Canadian GDP, and German retail sales. So while the going is still good against most currencies, consider locking in that exchange rate with Currency Index and removing any uncertainty from your overseas transaction.