This morning the EU released their GDP figures for Q1 which came in as many had expected with a 0.2% increase. This has provided some confidence to return to the euro after a dismal week of losses against most currencies. The concerns are still strong for many investors about how they will support the debt laden countries, limit exposure and recover costs, after the European wide financial plan failed for nearly a third of their members.
This next chapter of this story will be the outcome of a G20 meeting happening today which will cover debt levels as a main point. I would suggest that clients that are buying Euro’s to move quickly as running the risk of losing the 4% gains for possibly another 1% is not worth the risk. Clients selling Euros may also want to cut their losses as this trend could continue.