Sterling Euro Exchange Rates fall owing to positive German Economic Data (Tom Holian)

Sterling Euro exchange rates have just started to fall from their recent highs following better than expected German economic data released this morning.

The data has surprised the market with positive GDP figures as well as a Business Climate survey.

With US GDP data due out later today at 130pm this could see EURUSD exchange rates drop if the data is strong as I expect it to be.

Over the last few weeks we have seen a huge amount of Euro weakness owing to the increased risks of further Quantitative Easing happening in December as well as an interest rate hike in the US.

Indeed, the US Federal Reserve have stated on many occasions this year that an interest rate hike is data dependent and today’s data could provide the Fed with the data they need to change monetary policy at next month’s interest rate meeting.

Later today if the US data is good then I would expect Sterling to regain vs the single currency later this afternoon.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

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