This Euro report will examine the factors that could affect exchange rates in the short term to help you stay informed for upcoming currency transfers. The table below shows the difference you would have received when buying £200,000 at the high compared to the low for the past month.
|Currency Pair||% Change||Difference on £200,000|
Over the weekend the Spanish Foreign Minister made a pledge that would have been a particular boost to many of our clients who both already live in Spain or are planning on moving there.
Britons living in Spain will not have their lives disrupted after Brexit according to Alfonso Dastis, even if no deal is agreed between the UK and the EU. With over 300,000 Brits living in Spain and over 17m visiting Spain annually, I think it’s reassuring to hear such comments. Citizens’ rights have been one of the main sticking points during Brexit negotiations so far along with the Brexit bill/
I expect similar comments to result in a strengthening of the Pound perhaps more so than for the Euro moving forward, as I think the UK carries greater risk in this particular issue.
Despite the news and images surrounding the Catalonian push for independence being in the headlines for a number of weeks, the Euro is yet to be heavily impacted by the potential repercussions of Catalan independence.
Just yesterday Catalonian officials stated that they’re confident all officials (including police officers) would defy attempts by Madrid to enforce rule on the region.
Despite fears of unrest and the Spanish government sacking a number of key Catalan officials, the Euro has so far remained resilient although this is likely to be due to the complicated process involved with an official separation, should one be agreed upon. With that in mind I wouldn’t rule out a dramatic move should the issues continue, especially if the Spanish government is defied by officials in Catalonia.
In further interesting developments this weekend, two wealthy regions of Northern Italy (Lombardi and Veneto) have voted in favour of more autonomy. The two regions account for 30% of Italy’s national wealth, and there appears to be a growing feel that the North is subsiding the South in Italy, and this is reflected in the growing popularity of the Northern League. This is another issue that could heat up and future, and likely to be Euro negative along with Catalonian independence should progress be made.
This Thursday is likely to be the Euro's busiest day of trading, as ECB President Mario Draghi will be speaking. Markets are expecting to hear of an update regarding the ECB’s asset Purchasing Program, so expect to see a change below market expectations of €20/30bn to result in Euro strength, and a move from the current €60bn to a higher figure than the expected €20/30bn to result in Euro weakness.
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.
My experience with Foreign Currency Direct has been excellent, and my account Manager Joseph Wright has been First Class. He has provided me with all the information that I needed, in a very clear way, that made it easy to understand.
Successful transfer to France. I have used Foreign Currency Direct several times. Nothing is too much trouble to explain, and when it comes to the actual transfer, it takes place on time without fuss. Never had a problem. Thank you Joseph!
Very efficient and responsive. We had great service from Joe Wright who helped us (patiently and with humour) through our currency purchase and was then able to guide us through the process of sending money to France for our property purchase.
Joseph treated us very professionally as well as friendly, and advised and went beyond his duty. Would recommend and use him again.