We asked the team at HiFX for their thoughts on the current market situation and here’s their Market Commentary as of 09.04.2014
£/€
Range of the week: 1.2107 – 1.2193
Variance of the week on £10k= €86
The main release from the UK this week was GDP, although it increased from 2.75% to 3.1%, it was still under expectations, driving GBP to the week’s low of 1.2107. GBPEUR recovered within a matter of hours to the high of the week following on from weaker than expected CPI (inflation) from Germany. Low inflation in the EU is a hot topic at the moment as it could put pressure on the EU to consider further monetary policy easing, even though they are reluctant to do so. The ECB has had a reprieve this month however as the EU CPI figure released this morning was up at 0.7% vs the previous 0.5%.
In other news from Europe, the EU Purchasing managers Index was stronger as was the German IFO business climate survey. Also from Germany the unemployment rate and retail sales figures were unchanged from March.
UK retail sales were stronger than forecast as was the GfK Consumer sentiment survey. Overall however, all of this data is not enough to move GBPEUR out of the 1.19 – 1.2250 range that we have been trading in since the start of the year.
For all your foreign exchange requirement you can contact the HiFX team at their Costa Blanca office via telephone +34 965 978 952 / +34 711 762 922 or by email costablanca@hifx.co.uk