You've landed on our UK website.
Click here to visit our USA website.

If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

Weekly roundup: Euro bounces back from German political chaos thanks to strong Eurozone data

currency-newsWeekly roundup: Euro bounces back from German political chaos thanks to strong Eurozone data
Political chaos in Germany started the euro off on a bad footing at the beginning of the week, but the relentless tide of positive data from the Eurozone continued throughout the week, lending the euro support.

The euro slumped at the start of last week as news broke that German Chancellor Angela Merkel’s coalition talks with rival parties had collapsed.

Issues such as tax and immigration proved the main sticking points for the Free Democratic Party (FDP), who walked out of talks, leaving Merkel with the option of trying to form a minority government, coaxing rival parties back to the negotiating table, or calling snap elections for 2018.

The euro received a mid-week boost from Eurozone confidence data, which surprised economists and markets by not only rising further than to -0.8 as expected, but also breaking back above 0 and into positive territory for the first time in sixteen years.

Thursday’s data provided a strong boost for the euro, after PMIs from France, Germany and the Eurozone almost all significantly bettered expectations.

Meanwhile, minutes from the European Central Bank’s (ECB) most recent policy meeting showed that policymakers were worried about not setting an end data for quantitative easing.

The euro finished the week on strong form after survey data revealed that the German private sector was feeling its most confident since 1969.

Markets will be hoping tomorrow’s Economic Outlook from the Organisation for Economic Co-operation and Development (OECD) will confirm that the Eurozone is set to register strong economic growth.

German and Eurozone consumer price index figures, as well as German unemployment data, released midweek will cause significant volatility for the euro, as they could drastically affect the outlook upon monetary policy for the currency bloc.
Philip McHugh

Philip McHugh

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)

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.