Today is a big day for the Euro as we see the release of the latest European CPI data at 10.00 this morning with the EU unemployment rate being published at exactly the same time. Given low inflation has been one of the chief concerns for the European Central Bank recently, and was one of the reasons for the recent interest rate cut which weakened the Euro, I expect considerable volatility if the figure come out any different to the 0.5%.
This is because it would increase the possibility that the ECB may take further action soon to try and combat the risk of deflation and try and kick-start economic growth. They have left the door open for further intervention at previous press conferences, and whilst I am not convinced they will take action in August, a low figure will surely weigh on the Euro. Added to this would be the jobs figure which again needs to at least stabilise, if not improve, to allow the Euro to fight back a little. Once again should the rate come out worse than the 11.6% we could be in for another bumpy road for the single currency.
If you are looking to buy or sell Euros then today could be a key day for the short term future of the single currency as markets will likely take the inflation data very seriously. If you would like to make a currency transfer and want to find out more about our currency exchange services, then feel free to email Colm at email@example.com and I would be happy to talk you through how things work, and suggest a few options depending on your exact requirements. It could save you a lot of money compared with your bank or brokerage and there is no obligation to use us so why not get in touch and find out how to get the best exchange rate?