Foreign Currency Direct Foreign Currency Direct
Open an account

With little data released from the Eurozone this week, the market’s attentions are fixed on Brexit developments to determine EUR/GBP exchange rates. Yesterday evening saw the pound spike against the euro after Theresa May sought help from Labour to agree a Brexit deal and avoid a cliff-edge Brexit.

Currency Pair% Change in 1 monthDifference on £200,000
GBPEUR2.5%€5,800

Judging by recent market movement and reaction, it would appear as though the worst case scenario for the pound would be a no-deal. With the chances of a no-deal less likely there could be some opportunities for clients buying euros to take advantage. EU leaders are set to meet Theresa May in Brussels before April 10th, two days before the current Brexit deadline as May seeks a further extension, and there is likely to be plenty of volatility in the run up to the end of next week.

Eurozone Economic Recovery in Question

Economic slowdown in the Eurozon

The Eurozone has problems of its own however, with factory output for March performing at its lowest levels in 6 years, largely due to the current economic and political uncertainty across the globe. This negative data came shortly after the European Central Bank announced that it was unlikely there would be an interest rate hike before 2020. A rise in interest rates tends to make the currency in question more valuable as it offers more lucrative returns for investors, so there is a chance that this news could harm the euro’s strength in the long-term.

As the economic powerhouse behind the Eurozone, activity from Germany is key to the strength of the Bloc’s economy as a whole and yesterday it was announced that new car registrations in the nation showed a decline in March.

Later on this week there are further data sets due to be released from Germany including industrial production numbers on Friday, as well as Eurozone retail sales figures today. Keep in touch with your account manager to find out how these events could affect the cost of your upcoming currency transfers and to stay informed of all the latest market news.

News

BoE Sets Path to Negative Rates as COVID-19 Lockdowns Beckon

BoE Sets Path to Negative Rates as COVID-19 Lockdowns Beckon

The pound suffered in yesterday afternoon’s trading as the Bank of England laid out a framework for negative interest rates. 

By Jonathan Watson
Sterling Rallies Before BoE Meeting

Sterling Rallies Before BoE Meeting

Sterling rose nearly 1% against the euro yesterday following an increase in optimism regarding Brexit.

By Ben Fletcher
GBP Exchange Rates Stabalise Around 1.09 Against the Euro

GBP Exchange Rates Stabalise Around 1.09 Against EUR

Pound to euro exchange rates seem to have stabilised despite an acceleration in job losses reported during yesterday’s trading.

By Ben Small
Read more articles

 

Download our latest currency forecast

Download here

 

R. Johnson

Germany

Easy, friendly and hassle free. I’ve used many times over nearly 10 years, and always a simple transaction. Can’t recommend enough.

Read our testimonials

S. McCann

UK

Great, fast, friendly service. Best rates.

Read our testimonials

P. Clifton

We found our experience with Foreign Currency Direct very easy. The person dealing with our transaction was very helpful and friendly. We would definitely recommend them.

Read our testimonials
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.