Will the Euro now retrace the recent gains?

The Euro has just lately weakened following some not so great economic data on the PMI (Purchasing Manager’s Index) Surveys. The overall data across the Eurozone fell and perhaps more alarmingly one of the worst drops was Germany which is supposed to be the real engine of Eurozone growth.

These PMI surveys are snapshots of current economic data and some of the most up to date data available to allow us to form an opinion on the future outlook. This slightly worse data does paint an interesting picture for next week’s ECB will do.

High Unemployment and possible Inflation problems in the Eurozone have not been solved and whilst I cannot see the Euro weakening majorly, the outlook is not quite as positive as for the last couple of weeks. If you need to sell Euros for GBP you are currently just a cent from the best rates for such a transaction in 2014. I think if you are selling euros moving sooner or selling on the dips is the wisest thing to avoid being caught out.

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