Sterling is still well-supported against the euro this morning. However, it is weaker against the dollar after falling to an 18-month low at the beginning of the week.
The euro is still struggling due to reports that Russia launched a new offensive in the Donbas region of Ukraine on Monday. This, along with no indication that the European Central Bank will raise interest rates soon, has weighed on the single currency. Tomorrow’s eurozone inflation data could impact the euro also.
Data released this morning revealed that factory gate prices in Germany jumped to 30.9% in March, reflecting the impact that the Ukraine war is having on the German economy.
Meanwhile, it’s a different story for the dollar, which has strengthened due to increased expectations that the Federal Reserve could raise interest rates quicker and more aggressively than originally predicted.
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