In the last month, the GBP/EUR paring has seen mid-market movement of around 5 cents and sterling slip to some of the lower levels seen in the last 12 months, arguably providing a favourable opportunity for clients selling euros to secure their positions.
|Currency Pair||% Change in 1 month||Difference on £200,000|
In monetary terms, a transfer of €200,000 timed at some of the better trading levels, could have achieved in excess of £7000 more, which is considerable in such a short space of time and highlights how crucial the timing of transfers can be.
The EUR is currently benefitting from a weakened GBP, in light of the political turbulence from within the UK Government and the continued uncertainty surrounding the future relationship with the EU, post Brexit.
However, UK Prime Minister Teresa May’s majority success in her confidence vote last night has slightly alleviated some uncertainty, which could provide opportunity for sterling gains in the short term as the PM will look to refine her Brexit deal following meeting with EU member states in Brussels over the coming days.
Yesterday, EU officials announced that the French budget for 2019 will be assessed in Q2 next year, following the release of new economic forecasts. The announcement coincided with reports that French President, Emmanuel Maron has planned to increase Government spending in response to the recent anti-Government protests, which have seemingly left his hands tied, but which could likely lead to an increase in the country's budget deficit and lead to a violation of EU fiscal rules. As the EU has recently placed pressure on the Italian Government to reduce their deficit below the 3% threshold, initial estimates have suggested that Macron’s plan could push the countries to 3.5%, which could lead to pressure on the single currency.
Investor attention will turn to the European Central Bank’s (ECB) interest rate decision today and manufacturing data on Friday, as the outcomes of which could affect sentiment on the euro and influence market movement in the short term.
Despite expectations that there will be no change to interest rates, it is often the tone of the following monetary policy statement which can influence market movement, so clients with an upcoming GBP/EUR requirement can benefit by keeping in touch with their account manager to plan around the event.
All the staff I spoke with were helpful ,courteous and knowledgeable. The service is efficient and FCD make the exchange process hassle free.
Personal, attentive. What more can I say? First Rate.
Efficient, friendly, personable – I have used this service several times and will not hesitate to call on them the next time a foreign currency transfer is required.
Quick, competent and friendly: a reassuring excellence of service, which I heartily recommend to every potential client.