The euro is managing to hold its ground even though data would suggest an imminent fall off. PMI figures for the Eurozone showed that the manufacturing and services sectors are feeling the pain as inflationary concerns continue across the channel. This was also made clear in a poor Gfk German Consumer Confidence reading that was released this morning. The index dropped to a 2 year low as German consumers reported that increases in the price of food and petroleum products had them worried. We expect similar from the French reading later this morning.

 GBP fell against the dollar over the course of the day as a known MPC hawk,  Andrew Sentance, came over all dovish when describing the recent CPI spike as ‘temporary’ and that the slowing growth would act as a salve to the inflationary problems the UK faces.

Data today is fairly thin on the ground but we expect a weakening of the dollar after this afternoon’s Richmond PMI given last week’s poor reading from Philadelphia.

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 Please feel free to contact me (jeremy.cook@worldfirst.com) if you have any questions or thoughts regarding these updates or if you are interested in a particular event in the calendar. If you would like to discuss your foreign exchange requirements, please contact our:Corporate Foreign Exchange Team on 020 7801 9050 or our Private Client Currency Exchange Team on 020 7801 9080.   

Disclaimer: The above comments are only our views and should not be construed as advice. You should act using your own information and judgement. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice.Any rates given are “interbank” i.e. for amounts of £5million and thus are not indicative of rates offered by World First for smaller amounts. E&OE. Definitions of jargon/market terms can be found in our Glossary of Foreign Exchange Terms.