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 during the high and low points of the last month.
|Currency Pair||% Change||Difference on £200,000|
The Euro received a boost yesterday morning after German trade figures were released far better than expected. German exports rose by 1.4% in May compared to April, with a 1.2% increase in imports. This pushed their trade surplus to €22billion in May, a stark contrast to the UK who released details of a trade deficit of £3.1billion in the same period. This added confidence that, as Germany is Europe’s largest economy, a strong economy would therefore mean that they should be in a strong position to handle the upcoming Brexit negotiations.
Two of Germany’s largest industry groups, the BDI (Federation of German Industries) and the BDA (Confederation of German Employers’ Associations), have spoken out to say that they would not assist the UK in getting a good Brexit deal, and that their overall priority is to protect the 27 other EU members, even if it means a bad trade deal with the UK. These comments come only a few weeks after Brexit Secretary David Davis had said that German Industry would put pressure on German Chancellor Angela Merkel, to provide Britain with a good Brexit deal. As the UK is one of Germany’s largest trade partners, further developments from this story will likely cause volatility for GBP/EUR exchange rates.
Although data is relatively light for the Euro today, tomorrow could provide an excellent opportunity for clients looking to sell Euros, as Industrial Production figures for May will be released at 10am. The expectation is for a huge jump year on year from 1.4% to 3.6% and if this data is positive as expected, we could see the Euro make considerable gains against the Pound. As the UK Unemployment rate is also released before this at 8.30am, a volatile morning should be expected.
Looking a little further ahead, on Thursday we will see a host of Inflation reports released for France, Spain and Germany, and if these also impress as the latest economic data has done, we could see yet more gains for the Euro this week. If you have a Euro buying requirement in the near future, it may be wise to get in touch with us to help you to secure this sooner rather than later.
For more information on how future data releases could affect your Euro transfer, call our trading floor on 01494 725 353 or email me here.
Fantastic! Money transferred Friday afternoon from my UK account and in my Spanish account same day. Couldnt believe it!
I always use Foreign Currency Direct because the rates are competitive and the service is incredibly efficient and it is so easy to make transfers of currency abroad.