A strong day for Sterling yesterday following the release of better than expected UK GDP growth saw the Pound shoot up by more then a percent, holding at 1.38. This presented excellent buying opportunities for Euro buyers, after weeks of falling rates.
Today manufacturing data was released for the Eurozone. Manufacturing data normally has a larger effect on rate movements, as this is a key indicator to predict future economic growth for an economy. Due to the cheapness of the Euro, and the large amount of cheap credit made available by the introduction of Quantitative Easing in the Eurozone, the amount of manufacturing projects soared. There was good data from all over the Eurozone, even the underperfoming countries were punching above their weight.
As a result 1.37001 was the low of the day, and likely an indicator of more to come. There are few opportunities for Euro buyers now until after the election. Tomorrow UK data on our own manufacturing data may provide more short-term buying opportunities for Euro buyers.
Email me on [email protected] overnight, or call into the trading floor on 01494 787 478 and ask for Joshua.