Eurozone GDP figures are due to be released at 10am this morning and will provide us with the final revision for the fourth quarter of 2013. The expectation is for a change from 0.1% to 0.3% which if this occurs would be seen as good news for the Eurozone and we could see the Euro strengthen if the figures come out better.
Last week Eurozone inflation data was upgraded which helped the Euro and with Retail Sales due at the same time as GDP data expect there to be rather a lot of volatility this morning post release. This could provide some good short term opportunities for selling Euros into Sterling but I still believe longer term that the Euro will weaken from its current position.
With high unemployment and interest rates still historically low on the continent I think we’ll see the Euro struggle during the next quarter. The French and Italian economies are both struggling to grow and this is weighing on the Euro as a whole.
Interest rates will be announced for the Bank of England at 12pm tomorrow and the ECB will follow 45 minutes later. There are rumours that longer term the ECB will cut rates in order to combat low inflation and if this happens we could see the Euro lower against Sterling in the future.
If you have a currency transfer to make and want to save money compared to using a bank then contact me directly Tom Holian [email protected]