This Euro 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 during the past 30 days.

Currency Pair% ChangeDifference on £200,000
What happens next with Brexit? Unfortunately for anyone selling Pounds to buy a foreign currency, the uncertainty doesn’t stop there. If a deal can be reached on Sunday the withdrawal treaty, which has already been agreed in principle on the Irish border and £39bn financial settlement, and declaration on future relations will then be put to the House of Commons so that they can have a meaningful vote on the deal. This should happen next month and May is likely to face even bigger obstacles here than she has from the EU. If she cannot get the House of Commons to agree a deal then it looks as though the options are a no deal Brexit, or ‘no Brexit at all’ according to Mrs May yesterday when she clashed with Jeremey Corbyn before heading to Brussels.

Brexit uncertainty strengthens the Euro

The Euro is now trading at its best level in 4 weeks vs the Pound as the issue of Brexit continues to weigh heavily on the UK and therefore Sterling. Theresa May is in Brussels attempting to take things forward with the issue of citizens’ rights post-Brexit. The European Summit continues during today and the 27 leaders involved will consider how things have been going so far with the Brexit talks. The UK will not be present at that particular meeting and the general feeling is that the EU will conclude that there has been ‘insufficient progress.’ Since the triggering of Article 50 earlier this year the Euro has strengthened vs the Pound whilst the uncertainty continues. Therefore, I think if the conclusion is as many expect I think we could see further Euro strength against the Pound towards the end of today’s trading session.

European Council President Donald Tusk has claimed that there will be no breakthrough but he did hint that things could get better when the next meeting takes place in December.

There is still uncertainty as to what is happening with citizens’ rights, the border in Ireland and the ‘divorce bill’. According to many the payment that the UK will have to pay whenever that may be could be the trigger before negotiations can really progress. Until then I think the Euro will remain with the upper hand vs the Pound.

How will Catalonia affect the Euro?

The Euro has not yet felt any negative effects from the recent independence issue between Catalonia and Spain. As of Saturday Spain is likely to trigger Article 155 of the Spanish constitution which means that the government will be able to take control over the region.

The problem this causes is that the region is becoming hugely unsettled and there is clearly a voice that wants to be heard. The Catalan leader Carles Puigdemont faces a real battle and we could see many of the senior security officials removed from power in the region.

Spain is certainly flexing its muscles at the moment and I think if things sort themselves out we could see the Euro strengthen as it shows unity. However, if political tensions continue to rumble on we could see problems for the single currency.

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.


Read more articles
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.