By Ashley Finill
ECB interest rate decision
The ECB’s interest rate decision didn’t pull any surprises and reiterated their earlier stance of trying to keep borrowing costs low in the Eurozone during the pandemic to protect the economy. The ECB president Christine Lagarde took a press conference when the rate decision was announced and said that the ECB will maintain its recently increased pace of bond purchases until the bloc’s economy is firmly on the path to recovery. The next ECB interest rate decision is due to take place in June. There is a more optimistic feeling within the ECB with their vaccination process speeding up that this could create an opportunity for the economy in the Eurozone to make a sharper recovery in the coming months. We have witnessed two very different scenarios play out with the vaccine rollouts in both the UK and the Eurozone with Sterling rallying off poor handling and slow process of the vaccine rollout in the EU. That being said there has been a slight hiccup as of late in the UK with the AstraZenica vaccine going through some testing due to some problems arising in some patients albeit on a very small number of people, coupled with a more hopeful process in the EU we have seen the rates react and as such Sterling has started to show some weakness over the past couple of weeks. Should this continue we may start to see more of a recovery for the Euro against Sterling. Should you have a euro requirement or want to take advantage of the current rate it may be something worth doing sooner rather than later should the above come to fruition.
Covid passports for May 17th
There may be some good news on the horizon for all looking to travel within the EU for viewing trips as the Daily Mail reported yesterday that vaccinated British citizens are to be given the green light to travel to the likes of Spain, Portugal and Greece from the 17th of May. This news may kick the UK government into action in their bid to secure Covid passport for all vaccinated persons allowing a more free way of life for the likes of travelling and leisure. This is much welcomed news by all our clients I am sure who are looking at viewing the dream property in the sun. If you are looking at property online it may be worth getting in touch with your account manager here at A Place in the Sun Currency as we can put you in touch with property agents who can assist with you search. We can also provide information for solicitors and of course anything currency related.
Data due out today
A busy day on the data front today with some potential releases to affect the currency market. Firstly starting in the UK with retail figures already announced at 7am. In the Eurozone an imminent posting is expected at the time of writing at 8.30am for Markit Manufacturing, services PMI. The same data is also set to be announced in the UK at 9.30am. Over to the US who are also releasing Markit Manufacturing and Services PMI at 2pm. To see the week out ECB President Largade is due to speak, more information of yesterdays interest rate decision is likely to be disclosed.
As always contact you account manage here at A Place in the Sun Currency should you need any assistance or friendly guidance.