Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in a month affecting Euro rates when buying £200,000:

Currency Pair% ChangeDifference on £200,000
GBPEUR2.4%€5,360
US Inflation rocks markets

Problems for the UK economy whilst Eurozone economic data exceeds expectations

Eurozone inflation data was released as expected yesterday, so the recent upturn for the single currency has cooled somewhat. Despite no further aggressive moves against either GBP or the USD, the EUR held firm against both currencies during Thursday’s trading.

The EUR has performed better than almost every other major currency during 2017, over exceeding almost every analyst's early year predictions. Yes, it has been boosted by a downturn in UK economic output and the on-going ramblings of President Trump but this does not paint the full picture, or do it any real justice.

Why has the EUR gained so much market support?

Whilst there have been many issues surrounding the make up of the Eurozone and its fundamentals, its biggest weakness has seemingly turned into its biggest strength. When the cogs tick and the key component of the set-up (France, Germany, Italy) are prospering, it drives the overall economy forward. This is what has transpired over recent months and one of the main reasons the EUR has gained almost unrivalled market support.

As touched on in yesterday’s report by Daniel Wright, Eurozone growth forecasts have been raised. Economic and investor output & investor confidence has grown rapidly and as indicated by the recent trade balance figures, profits are outweighing spending.

Ultimately this is what it all boils down to and despite the Eurozone having some underlying issues of its own (For example the Greek debt crisis), the overall perception of the Eurozone economy is clearly far heathier than that of the UK’s.

As such, it is unlikely in my opinion that the Pound will find any real support up to or above 1.15 under current conditions. Whilst 1.10 seems to have offered those clients holding the Pound some protection of late, any further political or economic unrest could lead to this level being tested again before long.

Having said all this, I do have a sense that the EUR has almost reached its peak based on the current market information. Based on how much support it’s gained against both Sterling and the greenback, I would probably err on the side of caution and remove any market risks.

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.