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 30 days affecting Euro rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
The single currency has fallen to its lowest level against Sterling since the first week of August as the Pound has attempted to start a long and difficult fightback. However, I think it will be a long time before the Pound makes any real sustained gains vs the Euro. This morning the Eurozone announces both Industrial Production and Employment Change figures at 10am. Expectations for production figures are for 3.4% year on year and the data has been relatively strong in recent months so another positive announcement could bring Euro strength with it. Eurozone employment figures have also been rising recently and with the European Central Bank confirming earlier this month that they expect growth to be the highest in 10 years the continent is looking very positive at the moment.
The Euro vs the US Dollar is close to the highest level in almost 3 years trading at just below 1.20 at the time of writing this report.
Hurricane Irma has now dissipated and the impact on Florida has not been as serious as first anticipated but clearly there will be a huge clean-up operation which will run into billions which could cause Dollar weakness and therefore potentially Euro strength.
We end the week for the Euro with the latest Eurozone Trade Balance figures which has in recent times supported the single currency. Last month the Trade Surplus was in excess of €26bn so another similar figure could see the Euro make a fight back towards the end of the week vs the Pound.
Therefore, if you’re in the process of buying a house on the continent and concerned about what may happen to the value of the Pound vs the Euro it may be worth looking at buying a forward contract which allows you to secure a rate for a future date for a small deposit. Contact your account manager for further information.
Germany will be going to the polls later this month on 24th September. The polls show a clear lead for Angela Merkel over the next largest party the Social Democrats. This would mean a fourth term as Chancellor and the consistency of another term is likely to lead to Euro strength.
Under her stewardship, Germany’s economy has improved and as the Eurozone’s largest economy; this can only be good news for the Eurozone as a whole. Overall I expect the Euro to remain strong against the Pound whilst the uncertainty of Brexit continues and this is great news for anyone looking to buy Pounds with Euros having gained potentially thousands from the ‘Brexit discount.’
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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