The European Central Bank meeting took place yesterday and as expected they decided to once again keep interest rates on hold.
However, the Euro strengthened against the Pound as ECB president Mario Draghi suggested that the central bank are considering ending its bond buying programme by the end of the year.
The economy in Europe is doing very well at the moment and hit the best levels of growth in ten years at the end of January which provides evidence that the QE programme has had the desired effect on the continent.
Having cut the monthly amount from €60bn last year to just €30bn at the moment once this finishes I expect the Euro to strengthen against all major currencies in the longer term.
This morning German Trade Balance data showed an increase in the trade surplus again demonstrating how well the leading economy in the Eurozone is doing at the moment.
Turning the focus back to what is happening in the UK economy we have the release of both Industrial and Manufacturing Production data at 930am.
The expectation is for a rise from 1.4% to 2.8% for manufacturing and 0% to 1.9% for production data so if both come out as expected or even better this could give the Pound a boost later on this morning.
We end the week with US Non-Farm Payroll data due out at 130pm and this is likely to cause a lot of volatility for global exchange rates.
The Euro is currently close to a 3 week high vs the US Dollar so if the data comes out different to the expectation this could cause a lot of movement for the Dollar vs the Euro which could cause GBPEUR exchange rates to also be affected.
For further information about what is happening with Pound vs Euro rates at the moment and if you need to make currency transfer then contact me directly for a free quote and I look forward to hearing form you.
Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to offer you bank beating exchange rates as well as helping you with the timing of your transfer.
Email me directly Tom Holian firstname.lastname@example.org