Greece has been granted more time to repay their current amount of debt which stands at €96bn. Eurozone countries have also provided Greece with an extra €15bn in order to assist with their current bailout. With the current bailout programme due to end in the next two months this has provided the country with some much needed relief. The Euro report below looks into the ways that the economic struggles of EU member states can impact the Euro. The table below demonstrates the different exchange rates during the past 30 days, and the potential return in Euros you could have achieved when selling £200,000.00.

Currency Pair% ChangeDifference on £200,000
GBP/EUR2.2%€5,050

Since 2010 Greece has been given three bailouts since 2010 as it was experiencing a huge problem in their financial sector. This also caused many people to think that the country could end up leaving the Eurozone as its debt at the time was running out of control with little or no way to pay the debt off.

Since the bailouts began Greece has been under a lot of pressure by having to impose certain conditions on its economy and this has seen unemployment rise dramatically. GDP also now stands at 180% of GDP but this news has been seen as very positive with EU Commissioner Pierre Moscovici saying ‘the Greek crisis ends here tonight.’ This has helped the Euro stabilise against both the Euro and the US Dollar.

Could we see the Euro weaken against the Pound?

Could Germany be showing signs of political and economic problems?

Germany has come under pressure recently caused by the migrant crisis as well as a slowdown in the economy. As the leading economy in Europe any signs of a slowdown can often have a detrimental effect on the value of the Euro. German inflation data is due out on Thursday morning and with the ECB having announced an end to their QE programme in December this piece of data could be crucial to how the Euro will react so if you’re in the process of making a currency transfer involving the single currency then make sure you’re well prepared to move quickly.

German Chancellor Angela Merkel has attempted to solve the migrant crisis by working together with a number of different EU countries on separate deals. As yet the EU has not yet been able to solve the issue and this has caused problems domestically for the Chancellor.

EU Summit

With 16 EU members due to meet over the next couple of days at the EU summit this will be one of the key topics for discussion. According to some reports there have been more than a million migrants that have arrived in the EU since 2015 and EU leaders have not been able to decide how to handle the issue.

The Eurozone budget will also be under close scrutiny as differences continue to occur over how the budget will be allocated and spent. Currently Angela Merkel and French President Emmanuel Macron appear to be in agreement but at the moment many other members have not agreed.

The other topic will clearly be that of Brexit and so expect a volatile end to the week if you’re in the process of making a currency transfer involving the Euro.

For more information on how future data releases could affect your currency requirement, call our trading floor 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.