Sterling falls against the Euro (Tom Holian)

Sterling has fallen over night against the single currency as the US debt ceiling was raised during late trading yesterday. This has seen Dollar weakness which often is closely followed by Euro strength. This is one of the main factors why GBPEUR exchange rates have fallen.

EU inflation fell to a 3.5 year low after the Consumer Price Index showed inflation at 1.1%. This allows the European Central Bank scope to change monetary policy if required as more flexibility has seen a bit of Euro confidence.

Later today EU current account data is released at 9am and construction data at 10am which is likely to have an effect on the Euro this morning.

UK Retail Sales are due out at 930am and expectations are for 2.1% for year on year and any deviation on this figure could see some volatility. Personally speaking with retail sales one of the key drivers of the UK economy and therefore GDP if we see lower figures I predict Sterling to fall against the Euro during the morning’s trading session.

If you need to buy Euros feel free to contact me for a free quote Tom Holian

Working for over ten years for one of the UK’s leading foreign currency brokers I am confident that we get offer you better exchange rates than your bank.