22 February 2017


French manufacturing aside, Eurozone PMI flash estimates came in both stronger than expected and improving on last month. Unfortunately for euro bulls, political uncertainty continues to outshine data. Bond yields were under pressure and the single currency was unable to take advantage of the upbeat PMIs as it slipped to fresh early session lows and remained under pressure throughout the day.

In the UK, public sector net borrowing wasn’t quite as positive as expected but with tax revenues at record highs for January, the miss was attributed to new methodology on corporate taxes. Sterling again displayed resilience throughout the day and closed as the strongest of the majors. This was helped by comments from Bank of England Governor carney on Brexit where he said that if the process proceeds “relatively smoothly to an increasingly clear end-point” then that “would be consistent with a higher path of interest rates”.

There was steady demand for the U.S. dollar throughout Asian and the European morning session but we saw a brief dip on weaker than expected PMI flash estimates in both manufacturing and service sectors. However, the dollar regained its composure and ended the day stronger across the board with the exception of sterling.

First up today is the German IFO survey where a slight slowing in business sentiment is anticipated. Yesterday’s PMI flash estimates were broadly positive however so there may be some upside potential in today’s release. UK growth in Q4 is expected to remain at 0.6% as per the initial preliminary reading. Eurozone inflation is a final reading and looks likely to come in at 1.8% on the headline and 0.9% on core, the same as was reported in the flash estimate. Existing home sales is the only data release from the U.S. This evening‘s FOMC meeting minutes take on slightly less significance than normal as we have had Janet Yellen’s Humphrey-Hawkins testimony since which gave a more accurate current assessment Fed mind-set.

Trading overseas? Discover how you can save on your International money transfers. Alternatively, you may contact us  (Ireland1800 246 801   UK: 0800 840 2887) to discuss your payment needs, as we can guarantee to provide a payment solution that aligns best with your business.

Please note that this update is provided by FEXCO Corporate Payments for your information only. It does not constitute advice. You must rely entirely on your own judgement when making an Order and entering into a contract with FEXCO Corporate Payments and any decision you make to buy and/or sell currency is made solely on your own judgement. FEXCO Corporate Payments  is regulated by the Central Bank of Ireland and is regulated by the Financial Conduct Authority for the conduct of payment business in the UK

Follow us on LinkedIn, Twitter & Facebook

FEXCO Corporate Payments Details

FEXCO Corporate Payments  Unlimited Company  (t/a FEXCO Corporate Payments) is regulated by the Central Bank of Ireland and is regulated by the Financial Conduct Authority for the conduct of payment business in the UK.

Call us on:

Ireland: 1800 246 800
UK (London): 0870 060 0587
UK (Edinburgh): 0800 840 2887

FEXCO Corporate Payments Social Media Links: