Euro data released this morning weighs on the Euro exchange rates
Data released early this morning for the EU has showed that German private-sector growth slowed to the weakest in 18 months in December, increasing the risk that a soft phase will turn into a more pronounced economic downturn. The Euro has weakened off following this data after initially strengthening towards the end of yesterday.
Manufacturing and services in the 18-nation euro area barely expanded in December as sluggish growth in Germany and France kept business activity subdued. With France barely growing this year, Italy in recession and Germany struggling to leave a mid-year weak patch behind, the European Central Bank is readying further stimulus as governments wrangle over economic reforms. Some support for euro-area consumers may come from oil prices that have fallen more than 40 percent this year, while exporters may benefit from a weaker euro rates.
I am struggling to see a reason to buy euros at the current time as there will be better opportunities to buy euros at better rates in the coming months as the affects of quantitative easing hammers the exchange rate across the board. if you think i am wrong remember the slide in the pound from 1.2500 to 1.0100 in the space of six months when we announced QE.
So don’t go buying that house in France just yet – but if you do have to do what a mans got to do have a look at http://www.my-french-house.com/
Later this afternoon the ECBs Nouy speaks in Paris.