Euro Turbulence Against Other Major Currencies

The euro has taken advantage of the uncertainties surrounding the UK pound, but has been forced back by the US dollar.

EUR/GBP favoured the euro, which started the day by buying just over £0.806, and climbed to a morning CET peak of over £0.81, before falling back down to just under £0.808.

The euro has now reached its highest level against the pound in any time over the past year.

In his daily report, FC Exchange analyst Daniel Wray said that the main concern for the pound at the moment, is that there appears to be no specific trigger for the losses that it has incurred.

Market sentiment and general fear over the credibility of the pound seems to be the main drivers of the decline of sterling, as the cloud of the ‘Brexit’ continues to hang over GBP.

The EUR/USD relationship has been more chaotic, as the euro started the day CET buying $1.14, and peaked to $1.144, before falling back down to $1.138.

The euro has seemingly failed to take full advantage from the minutes being released from the Federal Open Market Committee, which revealed their concerns about the stability of the global economy.

Although the minutes also read. “Members continued to expect that, with gradual adjustments in the stance of monetary policy, economic activity would expand at a moderate pace and labour market indicators would continue to strengthen.”

Beverages Remains Clear at Top of EU Sector Rankings

Markit’s Europe Sector PMI has shown that beverages have been the best sector performer for March, as output rose by its fastest rate in 15 and a half years.

Beverages have been at the top of the rankings in the past two months, and across the whole of 2015.

A sharp rise in new orders helped to sustain the dominance of beverages among the detailed sectors. Growth of new business was the quickest since early 2008.

Software and services were found to be the next most successful part of the economy, with their best performance since September 2015.

Food, autos and hi-tech equipment also found a place in Markit’s top ten, consumer goods and technology were the fastest-growing of seven broad groups monitored in March.

Food and banks made the biggest leap in terms of their “league” positions in March, both sectors surged by 14 places to third and fourth respectively.

The other financials sector has also made a considerable recovery in March, climbing 12 places in the table, having been the bottom ranked sector in February.

Although construction materials, the second best performer during the first quarter on average, saw a slowdown in growth during March.

German Manufacturing Turnover Falls by 0.5%

The manufacturing sector in Germany has seen a decline in turnover of 0.5% month on month, comparing February and January.

This was significantly down from the results for January, which recorded a rise of 0.8% from December last year.

In February 2016, domestic turnover decreased by 0.8%, and the business with foreign customers declined by 0.3%, in comparison to the previous month.

Sales to euro area countries fell by 0.6% , and sales to other countries was 0.1% below January’s level.