No negative data seems to be getting in the way of the Euro at the moment. The Euro has been strengthening against both the Pound and US Dollar. The rise in the rate has been 2.5% from 2 weeks ago against the pound and is now up at the best trading levels since November 14th 2011 against the USD.
I would have thought that Mario Draghi’s comments on Wednesday regarding the Bank stress tests may have dented the Euros recovery. He said officials won’t hesitate to fail banks in its stress test next year as the ECB sets out to prove its vigilance in its new role of banking supervisor.
Couple this with yesterday’s poor PMI data with both German & French PMI’s looking softer and pointing towards a sluggish recovery nothing is halting the Euro.
If you are purchasing the Euro in the near future then be cautious as what will happen when there is positive data out of Europe and negative data for the UK. Could there be another big drop to 1.15. This could occur when retail figures are released on Monday and Unemployment figures on Wednesday for Germany.
For more information on the currency service that we provide please feel free to contact myself Ben Amrany at [email protected]
Ben Amrany