With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. The below table shows the difference in Euros you would have achieved when buying £200,000.00 during the high and low points of the past month.

Currency Pair% ChangeDifference on £200,000
Separatists regain Power in Catalan Province

Separatists regain Power in Catalan Province

Against the odds, Friday revealed that the separatists have regained power in the regional elections which threatens a renewed confrontation with the Government in Madrid.

The vote on Thursday last week was a re-run of October referendum which weakened the Euro following a severe backlash from the Spanish government resulting in violence. Turnout in the snap vote was 81.95% and lead to the separatists claiming 70 of the 135 seat parliament.

In the Spanish King's Christmas speech, King Felipe urged the people of Catalonia for co-existence rather than confrontation.

Italian general election looms in 2018

Whilst the festive calendar is quiet, now is the time to look ahead at what is likely to drive the Euro next year. One of the main fears for Brussels and in fact the Euro will be the Italian general election, where the anti-establishment political party Five Star could make its way to power. If they do make their way into power, it will likely lead to a referendum on Italy's membership of the European Union unless Brussels looks seriously at a financial reform which supports economies that aren't as productive as others. This could seriously weaken Brussels negotiating power in Brexit talks and could lead to Euro weakness if this goes ahead.

An end to Quantitative Easing in 2018?

Finally, looking forward to the economic side of things, 2018 could be a positive year for the Euro. Analysts are expecting Eurozone economic growth to end the year at around 2.4%. Starting in January, the amount of government bonds being bought will be reduced to 30bn a month until September 2018 and then it is expected to be dropped further. The European Central Bank still have underlying fears over inflation, however high growth and improving employment in the Eurozone should support the policy reduction and therefore a stronger Euro throughout 2018.

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.


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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.