Data this morning from Germany has seen the Purchasing Managers Index for the manufacturing sector rocket to 59.4 signalling major expansion in the sector and providing a boost for the single currency. It signals a brighter outlook for the EU and could help see the Euro continue to strengthen. This also comes at a time when just yesterday Angela Merkel stated that the Euro is too weak. A weak Euro inevitably helps Germany’s manufacturing sector but as she has publicly stated the Euro is too weak could suggest change is in the air. Clients looking to sell Euros could see some even better opportunities in these next two weeks. This is something we can help with in terms of the timing of an exchange.
In the meantime the issue of Greek debt remains an obstacle for final agreement before a debt repayment from Greece is made. Greece will be meeting 15th June where an agreement is widely expected to be made whereby Greece will not default in its debt obligations. However the talks surrounding debt relief will be ongoing and there are opposing views from the International Monetary Fund. Any obstacles could see further volatility for Euro exchange rates.
The pound is continuing to fall against the Euro after a brutal week of economic data which has taken the shine off the pound. Last week’s particularly high UK inflation data and weak wage growth were the initial triggers for sterling weakness and rates look like they may fall below 1.15 for GBP EUR exchange rates. The UK election is the major focus for this pair and the pound may have further to fall as we approach 8th June. Brexit negotiations will recommence after a new British government is in place and continued volatility should be expected at this time.
If you would like further information on Euro exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on email@example.com