German GDP data out this morning showed a fall to 0.4% compared to the expected 0.5% according to first official estimates. During 2012 the figure was 0.7% so with things in the Eurozone’s largest economy on an unsteady footing things could get worse for the Euro going forward. Their current growth forecast by the German government is 1.7% but I think this is rather optimistic.
If the US cuts its stimulus further this could have a negative effect on the global economy resulting in a slowdown worldwide and causing large financial problems. If the US economy begins to struggle this would lead to less demand for German exports which is a key part of their economy.
Tomorrow the Eurozone releases their Consumer Price Index for December which is a measure of inflation. If we see inflation dropping this could lead to Euro weakness providing another excellent opportunity to buy Euros.
If you want to save money compared to using a bank to buy or sell currency then get in touch directly Tom Holian [email protected]