The Eurozone suffered a dissapointing release from Germany (astounding as it sounds) which showed inflation was more under control than expected. PPI figures were announced this morning at 6.2%, 0.4% lower than what had been expected.
Germany normally lead Eurozone strength and so figures that alleviate pressure from a potential rate hike would normally drive Euro rates down and indeed the Euro has lost ground against some major currencies – SEK and HUF for instance. However the Euro continues to gain against a bearish Sterling and US Dollar. The UK’s MPC minutes showed a 6-3 split in the vote for a rate hike which has lead to vast Euro gains against Sterling so far today, representing a great opportunity to buy.
The Euro has gained even more today against the US Dollar which continues to struggle following pressure from S & P to downgrade their credit outlook to ‘negative’. Whilst the Americans’ safe haven status wobbles – under threat for a number of reasons (China likely to become the world’s largest economy, a huge budget deficit and very much a struggling Housing market) the Euro has hit rates of 1.45, not seen since December the 15th 2009!
If you are buying Dollars and selling Euros then why not take advantage of these highs? You can secure a Forward Contract for only a small deposit of the total contract amount – to find out exactly how fill in one of our contact forms to the right and a specialist Currency Broker will be in touch.