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 just a month affecting Euro rates when buying £200,000 at the high and low points of the past month:
|Currency Pair||% Change||Difference on £200,000|
Clients with an upcoming EUR currency requirement will be extremely satisfied with the current levels, which are at near three-year highs against both GBP & the USD.
The Eurozone economy has grown twice as fast as the UK’s in the last month and with investor confidence in the region high, it is no wonder the single currency is performing well against its currency counterparts.
The key question now is how sustainable this improvement is and are we likely to see the EUR gain even more value over the coming weeks?
Personally, I’m still wary about assuming that the upturn will continue at any great pace. We need to consider that that the Eurozone is an extremely wide region, which has so many economic variables. Any slowdown in its major economies such as Germany or France, will likely have a negative impact on the value of the EUR moving forward.
The single currency has found support over recent months, due to growth forecasts being raised and a positive outlook by investors. It has also seen its value increase against the USD but in particular Sterling, due to a complete lack of market confidence in the UK economy. This has inadvertently boosted the EUR standing and therefore you could argue that some of its value is superficial and as such I would be protecting any EUR sell positions wherever possible.
Like the UK, those clients holding EUR should be keeping a close eye on some key economic data releases this week.
Today we have the latest Industrial Production figures, which are expected to fall from last month and could halt any further advances for the single currency this afternoon.
However, most of the attention is likely to focus on Wednesday’s Gross Domestic Product (GDP) figures, which are expected to confirm that the Eurozone economy has grown by 0.6% in the last quarter. GDP is possibly the most important release for investors, due to the overall view it gives them on the well-being of a countries economy. Increasing growth is seen as a sign of strength and bodes well for the currency in question.
Finally, on Thursday Inflation & Trade Balance figures are released. These are followed by the latest European Central Bank (ECB) Monetary Policy Meeting Accounts, so expect the EUR value to continue to fluctuate throughout the week.
Thank you for reading my Euro 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 here.
Dealing with Matt is a pleasure, he makes everything very easy, whilst making you feel your money is totally secure.
Service was excellent from Matt Vassallo, speedy transaction at favourable rate.
Great service from Matt – helpful and patient! Would definitely recommend the company & will use them again in the future.
I have used Foreign Currency Direct for three years now and would definitely recommend them. Although my currency purchases tend to be smallish my contact, Matt Vassallo is always very polite and efficient. I shall continue to use them whenever I need Forex.