Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting Pound Sterling rates when buying £200,000 during the high and low points of the past month:

Currency Pair% ChangeDifference on £200,000
GBP/EUR2.36%€5263.44

Euro boosted as Catalonian tensions ease for now

Euro exchange rates in SeptemberThose watching the Euro’s value will be aware that the issue surrounding Catalonian Independence is one of the main drivers for the Euro’s value at the moment.

Aside from the much publicised vote and tensions with the police on the day of the unofficial vote, the ongoing saga hit its peak on Tuesday as Catalonia’s president, Carles Puigdemont announced the region’s independence from Spain but then immediately put the move on hold in order to negotiate with Spain. He claimed that the unofficial vote has given the government a mandate to pursue independence.

These comments resulted in a stronger Euro and a significant boost to the Spanish stock market’s (IBEX) value.

I expect this issue to continue to drive the Euro’s value in future, especially after this morning’s developments. Spanish Prime Minister, Mariano Rajoy has asked for further clarification from the Catalan region, and given the region 8 days to drop its independence bid otherwise he will rule directly over the region. Should the negotiations become heated I’m expecting to see Euro weakness due to the significance of the Catalonian region in terms of Spain’s GDP. It’s worth noting that the Euro to US Dollar rate hit a 2-week high in the wake of decision to suspend Catalonian independence.

What to expect from Draghi’s speech this afternoon

The ECB President, Mario Draghi will be speaking later today at around 3.30pm. Financial markets tend to watch his speeches as closely as anyone’s and expect market reaction if he alludes to dropping the current Quantitative Easing scheme or any other similarly hawkish comments.

A number of other ECB figures will be speaking between now and the end of the week, so feel free to get in touch if you wish to be kept updated regarding Euro rates specifically. They’re coming off of their 8-year highs vs the Pound and 18-month highs vs the US Dollar, although still trading towards to top end of their current ranges.

Davies and Barnier to sum up Brexit talks today

Later today Brexit Secretary David Davis and his European counterpart, Michel Barnier are expected to give us an overview of how Brexit negotiations are going so far. This is an important time as the 5th round of talks are about to end and there is a crucial EU summit on the 19th and 20th of this month. Reports are that this round has been especially leak proof so any revelations later today could result in swings for GBP/EUR. Do feel free to register your interest with us if you wish to be kept updated.

Thank you for reading my Euro currency report, if you have any questions about Euro exchange rates I would be more than happy to discuss them – you can contact me with any queries on 01494 725 353 or email me here.