Tomorrow’s speech by European Central Bank (ECB) President Mario Draghi is likely to have an effect on EUR exchange rates and as such, those clients with EUR requirements should be keeping a close eye on market developments this afternoon. Mario Draghi often has a tendency to surprise us and if I was holding EUR I would be keen not to lose the gains I’d made over the past few months.
Whilst Sterling remains under pressure due to how fragile the UK economy remains, the current trend will not last forever. In fact there were reports yesterday that in fact the UK economy is likely to prosper within five years of leaving the EU and whilst this is still someway off, any positive rumours could well give the Pound boost, especially when consider that much of the negative forecasting has now been factored into GBP/EUR exchange rates in my opinion.
For those clients looking for key market triggers this week beyond Draghi’s speech today, then look no further than Thursday’s Industrial & Consumer Confidence figures. These are expected to show a small drop and if this is the case then further EUR improvement is unlikely, another key reason to protect yourself ahead of his key release.
The economic data does not stop there however and perhaps the most important day of the week will Friday, due to the release of the latest UK Gross Domestic Product (GDP) figures and the official Eurozone Unemployment rate. With UK GDP expected to remain unchanged at 0.6% and Eurozone unemployment expected to fall from 10.1 to 10%, expect the EUR to move depending on how the aforementioned data comes out.
Whilst it is impossible to say exactly how future data will be released, or how the current volatile market will develop my key point to all clients holding EUR is that they should be looking to take advantage of the current near four year highs, rather than gamble on further improvement when the Eurozone economy itself remains full of potential pitfalls that could weaken its current position.
If you would like to discuss the current market trend, or would like to compare our award winning exchange rates with your current provider, then please feel free to contact me on 00444 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on email@example.com