020 7898 0500The euro had a positive day against the pound sterling and US dollar, gaining over 0.8% and 0.4% respectively.
In terms of data, the German Unemployment Rate had unexpectedly fallen to a fresh low of 6.1% in May. This is positive for the EU given the labour market in the EU’s major economy is showing strength. The boost was short-lived, however, as the Eurozone reported negative inflation for May as the Consumer Price Index (CPI) – a measure of inflation – edged from -0.2% to -0.1%, an improvement on the previous month, but still crucially sub-zero. Further to this negative sentiment, the latest raft of Purchasing Managers’ Indices (PMIs) showed the slowest rate since February.
Given all the above, the softness of the US dollar was the main driver for the increase against the US currency, while renewed Brexit fears following Tuesday’s poll swaying towards the ‘Leave’ camp moved sterling lower.
There are some important fundamental data and speeches coming from the EU today: EU PPI index; the European Central Bank (ECB)’s interest rate decision; and the following ECB Monetary policy statement and conference. Although the markets remain sceptical of the chances of further ECB policy loosening, it is certainly worth watching as any positive or negative comments could affect the shared currency.
If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news and currency purchasing strategies.
