Euro rates highest since January 2013

Monday was a particularly quiet day on the markets with no key data being released for any of the major currencies. It was therefore sentiment that drove the markets as the Euro continued to be sold following the ECB’s rate decision last week. The ECB president spoke of the overvalued Euro restricting their recovery, particularly when it comes to exports, and that the door is still wide open for changing their monetary policy further in the coming months if they feel it is necessary.

Subsequently we have seen GBP/EUR hit new year years and therefore providing a superb opportunity for buyers to lock in their rates for any short term requirements. It is probably also worth mentioning that a turn in fortunes for the Euro is also likely to impact the Dollar and could well see GBP/USD drop off from their 5 year highs over the coming weeks.

The notable economic releases for the day ahead are the Euro-zone economic sentiment figures at 10:00am, and the US Retails Sales figures for April are announced at 1:30pm. Today is otherwise another quite day ahead of tomorrow’s key UK releases when we will here from the Bank of England with their quarterly inflation report and await the latest details of unemployment and average earnings in the UK.