This morning at 10am to start a busy day the Quarter 2 GDP figures will be released for the Eurozone and are set to remain the same as last quarter along with this time last year. Any variation on this data could generate volatility however if anything the data is likely to show a improvement. The EU business confidence has been good over the last 6 months, but it will be interesting to see if that becomes good data.
The main event today will be the European Central Bank’s latest interest rate decision, which will be followed by a statement from Mario Draghi. There has been talk of tapering back the current economic stimulus in the Eurozone, with many earlier in the year hoping that would come in September. However President Mario Draghi hinted two weeks ago that he may hold back from any changes until December at the earliest. This could have a detrimental effect on the Euro and we could see the GBP/EUR rate return back to the 1.10 in my opinion.
Brexit Bill Debate
In the UK to add to the drama the Great Repeal Bill will be debated in the House of Commons. The Bill is the process for introducing current EU laws into the British Constitution avoiding any sort of cliff edge once the UK part form the European Union. There is thought to be murmurs of a Conservative revolt which could be very threatening as they don’t have a majority. If there was dissent in the ranks then we may even see a vote of no confidence in the Government, which would cause instant Sterling weakness.
If you do have a upcoming currency requirement and would like to discuss what might be the best option, please send me an email to Ben at firstname.lastname@example.org. The currency markets are always moving and timing a transfer can help make sure you achieve the most for your funds. Working for a brokerage I am able to help you achieve the best rates of exchange and set alerts to make sure you capitalise on any movements on your favour.