Euro Exchange Rates: What Obstacles Will the Euro Face Next Week?

What Obstacles Will the Euro Face Next Week?

As the trading week closes for the weekend, the euro investors will look ahead to what is to come for the currency next week. This week closed on a rather sour end after President Lagarde’s optimism of a recovering Eurozone economy was undermined by poor German market data. The euro will be looking to bounce back next week as it awaits the unveiling of its economic growth forecasts, industrial production figures and GDP value for Q4 2019. All three releases will likely shape the euro’s path in the near-term as the currency looks to perform better than recent weeks. Investors will also keep an eye on the ongoing UK-EU trade talks which kicked off for the initial week of negotiations this week.

Euro Faces Important Data in the Week to Come Which Could Shape Its Direction

The euro will see three major economic releases in the upcoming week. The first will be the European Commissions economic growth forecasts which will outline the forecasts for the Eurozone’s growth as well as touch on the recent events leading up to the forecast. The Eurozone was described as under recovery by President Lagarde, but recent German economic releases have contradicted this notion as they failed to impress on Friday. Revisions for the economic growth could be seen on Tuesday.

Following this, Wednesday will see the Eurozone’s industrial production figures at 10:00am GMT. With a drop in the German industrial production figures, the Eurozone will maintain a cautious approach to this data release which predictions expecting a drop.

Finally, the Eurozone will reveal its GDP figure for Q4 of 2019. This figure will likely be the most important release of the week as the GDP outlines a measure of the total value of all goods and services provided by the Eurozone. GDP is considered as a broad measure of the Eurozone’s economic activity and health. The market has predicted that there will be little change in the GDP figure from the previous quarter, but investors will be keen to observe the actual outcome as it could sway the euro if a shock figure is revealed.

EU-UK Headlines Likely to Remain Largely in Focus

This week saw the start of the EU-UK trade deal negotiations which are set to continue for the next 11 months as the two parties attempt to come to an agreement on the Brexit trade deal. With the UK setting out to achieve a Canadian-style deal, the talks could prove difficult as the EU also upped the ante by announcing it will tighten its MiFID regulations this week. The road ahead looks uncertain for both parties and volatility will be seen as the talks develop.

If you have an upcoming currency transfer and would like to plan around Brexit, feel free to contact me directly, Tom Holian, Using the form below. I look forward to hearing from you.