Poor day for Euro has allowed some respite for the pound

Yesterday was a poor day for the Euro following negative Industrial Production data which fell 0.4% below expectations, causing some much needed relief for the pound resulting in the best levels we have seen in 2 weeks, and bringing Euro buyers a great opportunity to trade. Don’t let this take away from the fact that rates are still downward trending and it could be the last time we see a rate spike reach at these levels as we approach June’s EU referendum. The Euro also weakened off against the Dollar throughout yesterday’s trading day, falling despite the US posting an unexpected decline for March Retail Sales as well as a surprise drop in Producer prices.

Today is a big day for the Euro, Pound and Dollar with lots of data release out to be aware of. This morning’s EUR Inflation results could cause movements in rate no matter the results. If they post figure under the market’s expectations we could expect to see the Euro weaken further, if as expected or better the euro could strengthen and push GBP>EUR rate back down. The Bank of England is due to release their latest Interest rate decision, vote to change and statement at 12:00. However, we don’t expect a alter in their stance to support any real chances for the Pound. US Jobless claims and Inflation due at lunchtime, again one to have a eye on as in case any unexpected results occur and affect rates.

Although Pound Euro rates have seen a boost this week, there is as ever no way of knowing how long this will last or should I say how quickly they will fall back down to last week’s levels. If you have a requirement due in the run up to June it is worth considering what could happen to rates and ask yourself if the downward risk outweighed any upside potential. If you are concerned about how the downward trending rates can affect your future requirements then please do get in touch with one of our friendly team at Currency Index and we will be happy to help answer any questions you may have.