The pound fell sharply yesterday after the UK inflation rate jumped from 7% to 9% – its highest level since 1982.
As inflation within the Eurozone continued to show signs of weakness this left the single currency on a weaker footing against its rivals.
Investors were also disappointed by underwhelming German trade data, which saw export volumes stagnate in January.
With the US-China trade spat looking unlikely to see a resolution any time soon the prospect of a continued slowdown in global trade does not bode well for the outlook of the German economy.
Even so, as the latest Eurozone industrial production figures bettered forecast this helped to limit the downside exposure of EUR exchange rates for the time being.
Another set of negative readings from the ZEW economic sentiment surveys could give investors fresh incentive to sell out of the euro.
EUR exchange rates also look vulnerable to selling pressure if the ECB’s Economic Bulletin paints a negative picture of the Eurozone’s outlook, particularly if the odds of further monetary loosening appear to increase.
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)