Last week’s high: €1.1165
Last week’s low: €1.1039
Euro Bolstered by Eurozone Unemployment Falling to 10-Year Low
Last Monday saw the release of German retail sales for November, which showed a better-than-expected jump from -0.3% to 1.4%, causing the Euro to rise against Sterling at the start of the session.
The release of the Eurozone’s business climate for December slipped further than expected to 0.82 from 1.04, although despite this poor figure from the Eurozone, this did little to stop the Pound sliding against the Euro on Tuesday.
With Parliament returning to Brexit debate last week, the date of the ‘meaningful vote’ is set for tomorrow. Theresa May’s failed attempt at gaining the support of the Democratic Unionist Party (DUP), who dismissed her proposals regarding the Northern Irish backstop as ‘meaningless’.
November’s Eurozone unemployment figures were released on Wednesday, showing that jobless levels had hit a 10-year low of 7.9%.
Further causing the Pound to fall against the Euro last week was the release of the UK’s like-for-like retail sales which showed that retailers had suffered their worst Christmas in a decade.
The UK saw a rise of 0.2% in GDP for November, a higher-than-expected reading, with the services and construction output growing, although the industrial sector contracted by 0.4%.
EUR Outlook: Strong Eurozone Data to Give EUR the Upper Hand?
The start of this week’s session will see the release of the Eurozone’s seasonally adjusted industrial production figures for November, with forecasts suggesting that industrial production is going to contract by -1%, which could see the Euro slip against Sterling.
The Parliamentary vote on Theresa May’s Brexit Withdrawal Act could cause the Pound to plummet if MPs vote against the deal tomorrow.
Wednesday will see the release of Germany’s harmonized index of consumer prices for December, which is forecast to hold steady at 1.7%, which could buoy the Euro.
The Pound Euro exchange rate could continue to fall on Friday as the British retail sales figures contract in December compared to November as predicted.
10:00 EUR Industrial Production s.a. (Nov)
n/a GBP UK Parliamentary vote on Brexit
07:45 EUR Consumer Price Index (Dec)
07:00 EUR Harmonised Index of Consumer Prices (Dec)
09:30 GBP Retail Price Index (Dec)
09:30 GBP Consumer Price Index (Dec)
09:30 GBP Core Consumer Price Index (Dec)
10:00 EUR Consumer Price Index (Dec)
09:30 GBP Retail Sales (Dec)
f you need to make an EUR transfer but don’t have an account with us just click here to get started.
Foreign Exchange Manager