This report will examine the factors that could affect exchange rates this week in order to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low points yesterday.

Currency Pair% ChangeDifference on £200,000

Asset Purchasing Scheme Announcement

The European Central Bank will today deliver the Eurozone’s latest interest rate decision where there isn’t expected to be any changes to the rate. However there is expected to be a tapering of the European Central Bank's Bond Buying Program. Currently the ECB buys assets at the rate of €60bn a month and the expectation is that this will be cut by €30bn or €20bn. This change has been a long time coming for many economists with Eurozone data performing well over the last few months.

What will happen to the rate?

Should there be a significant change to the current program then Sterling could well lose much of the ground made up yesterday. The key question will be by how much does the amount of assets the ECB purchase in a month, if this figure only changes by €10bn then investors will see that as a negative change. However a significant change could well help the Euro make a gain of a couple of percent.

Mario Draghi, President of the ECB issues warning to his peers

Mario Draghi’s Influence

Mario Draghi will speak tomorrow and is known for generating positive movement for the Euro. At the last Interest rate decision the GBP/EUR rate was close to the 1.07 mark and he was careful not to drive that any lower. On this occasion however pushing the rate down from 1.12 will not be a major concern for him, giving him the go ahead to lay out the ECB’s plans in the next few months. Whilst there isn’t likely to be any interest rate hikes in the Eurozone for some time, he could provide clarity on when he thinks that might change and what needs to happen to force that change. The GBP/EUR rate has been range bound over the last 6 weeks not moving above 1.14 or below 1.10. If you’re hoping to complete a transaction in the near future make sure you’re in touch with your broker so they know to contact you should the market move in your favour.

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


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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.