EURO Update

Yesterday the euro gained happily against both the dollar and sterling following better than expected unemployment figures.  These were released mid morning and showed an improvement from 10% to 9.9% which does not sound much of an improvement but does show that the euro zone is starting to recover. Later this week tomorrow they release their own Interest Rate decision along with GDP figures.

Speculation has continued to build in Europe as one of the ECB’s governing council members, Mario Draghi, said recently that “inflation is forcing policy makers to focus more on the timing of future interest-rate increases.” They have now kept interest rates on hold since May 2009 at 1%.

GDP figures are also widely expected to remain on hold but with increased productivity recently from Europe there may be a surprising result. If these figures are different from the forecast expect early volatility.