Euro exchange rates remain start the week off stable – Inflation and Brexit key to performance

Euro exchange rates have started the week off fairly stable amidst on-going Brexit issues coming out of the U.K and Donal Trump’s visit to Europe so far not throwing up any major volatility.

Investors and speculators alike will be mainly focussed on how the Brexit plans in the U.K continue to evolve, most notably for EUR/GBP exchange rates as even the smallest announcement surrounding this can lead to EUR/GBP moving fairly significantly.

As it stands, the Government in the U.K appear to be finding life extremely tough when trying to iron out a deal and an approach towards leaving the EU and as it stands it appears that they really cannot seem to agree on anything.

Various ministers have resigned and there has even been calls for another referendum, this time including 3 different options which would merely cause more market uncertainty and more likely than not lead to the Pound suffering further.

Should the U.K manage to steer this political ship through the current choppy waters then you may see GBP gain back ground against the Euro but there is a long way to go before I feel we will see that, as there are a lot of things to untangle.

In terms of economic data this week one of the key areas that will be looked at for the Eurozone will be the level of inflation. Inflation data is released on Wednesday, with an expectation of a slight increase year on year from 1% to 1.1%. An increase would be see as positive for the Euro, should inflation levels remain at 1% then we may see a little Euro weakness on Wednesday morning.

The rest of the week does not have a great deal to offer for Eurozone data, so releases from other areas around the world will most likely be the main drivers for Euro rates against other major currencies.

If you have a Euro exchange to carry out against a specific currency and you would like to know what is due to come out that may impact you then feel free to contact me today and I can give you an overview. You can email me (Daniel Wright) on djw@currencies.co.uk with a description of what you need to do and I will make sure I get back to you personally.