This Euro report will examine the factors that could affect exchange rates this week in order to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low over the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
The Euro is trading at its best levels all year against the Pound as the UK economy continues to struggle owing to the ongoing uncertainty caused by the Brexit negotiations.
Since the highest point of the year back in Easter when Theresa May called the snap general election we have seen GBPEUR exchange rates fall by as much as 6.5% or the difference of £10,800 on a currency transfer of €200,000. This highlights the importance of keeping in contact with a currency broker who can keep you updated with regular movements on rates.
This week we have some positive economic data in Europe with Eurozone GDP coming out in line with expectation for 0.6% growth for the quarter and growth of 2.1% for the year. We have also seen the news of positive Unemployment data showing a fall from 9.2% to 9.1% highlighting the strength of the Eurozone.
Combined with rising inflation this could lead to the European Central Bank looking at tapering their current Quantitative Easing programme. With Inflation data rising towards the ECB’s target of 2% this in my opinion gives justification to reduce the stimulus that the ECB has been providing over the last few years.
Mario Draghi has used the term ‘patient’ in his most recent commentary however this is clearly on the agenda.
We begin this morning with Markit Services data out at 9am which is used as an indicator of the economic situation in the Eurozone services sector. This has been on an upwards curve since June and I think we’ll see further improvement once the data is released.
Shortly after this Eurozone Retail Sales data is set for release. Likewise with the services data the figures have been improving lately and I think we’ll see further Euro strength during today possibly providing Euro sellers with better opportunities as the day progresses.
Overall I think the Pound will have a difficult end to the week against the Euro. My main reasoning is that with such positive data in the Eurozone combined with uncertainty in the UK this could cause a problem for the Pound. The other reason is that the Euro is close to an 18 month high vs the US Dollar highlighting that it is not just Sterling weakness but Euro strength.
Thank you for reading today’s Euro report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than happy to assist you with any of your currency requirements. Feel free to e-mail me here.
As always, I got an excellent rate. Tom is always helpful and the whole process is extremely quick, efficient and simple.
Tom helped us so much explained every thing and got us a better rate to buy our home in Spain, when we had to pay for furniture went back again and he sorted a rate out for me.
Brilliant service, genuine advice and rapid transfer of money to our French bank account. Tom Holian seems like a friend although we’ve never met!