The pound made fleeting gains on Thursday, driven by hopes for a solid economic rebound in the UK this year.
Evidence that the Eurozone’s two largest economies performed better than anticipated in the third quarter helped to ease anxiety over the fourth quarter outlook, at least temporarily.
A stronger third quarter could limit the impact of any fourth quarter growth contraction, even if the currency union experiences a double-dip recession.
Even so, with the European Central Bank (ECB) maintaining a dovish policy outlook, this limited the potential for EUR exchange rate gains.
If November’s Eurozone consumer price index shows another negative inflation reading, this could see the single currency fall out of favour this week.
As long as inflation continues to trail far below the ECB’s 2% target, the case for greater monetary loosening measures looks set to increase, adding to the likely size of a December policy move.
However, a monthly rebound in German retail sales figures for October may help to limit any EUR exchange rate downside in the short term.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)