020 7898 0500The euro had a busier-than-expected day on Tuesday but it relied again on other currencies for any significant movements. With weakness seen through the night on Monday after the Eurozone banking holidays, the euro managed to claw back some of its losses against sterling as poor UK inflation data allowed the single currency to strengthen.
Against the euro’s major peer – the US dollar – the little action seen on Monday was replicated as a small sharp movement was seen on Tuesday afternoon, but no data or news was released to support this.
Today may well be the most important day for the single currency this week as final Consumer Price Index (CPI) figures are expected to fall dramatically from 1.2% in March to a flat reading of 0% in April. This will be a huge concern for the Eurozone; a drop was always likely to be seen after the initial boost of quantitative easing. However, if the Eurozone economy falls back into deflation then this is likely to have a large effect on the euro.
If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news and currency purchasing strategies.
