This Euro currency update discuss the factors that could affect EUR/GBP exchange rates this week in order to help you stay informed if you need to transfer Euros to Pounds. The table below shows the difference you would have received when buying £200,000 at the high compared to the low during the last 30 days. For current live exchange rates click here.

Currency Pair% ChangeDifference on £200,000
GBP/EUR1.8%€4,150
Trade Wars threaten EUR?

EUR/GBP - The Euro continues to gain versus the Pound

Eurozone Industrial Production data is due for release at 10am this morning with the expectation for an improvement of 3.6% compared to the previous release of 1.4%. The European Central Bank has recently suggested that it will be looking to taper its monthly QE programme and so this morning’s data could be another indicator that the tapering could start sooner than some may expect.

With tomorrow’s German Consumer Price Index due to show 1.6% this is comfortably close to the target level of 2% and this would allow the central bank further scope to reduce the tapering.

As Germany is the largest and most successful country within the Eurozone, if the data is positive then this generally speaking results in Euro strength versus the Pound. So if the data comes in as expected then I think we could see GBP/EUR exchange rates continue to fall.

If you have a currency transfer to make to buy Euros it may be worth getting this organised before tomorrow’s data release.

We end the week with Eurozone Trade Balance data and the previous month showed €19.6 billion compared to the UK’s Trade Balance which showed a deficit of just over £11 billion. Again this highlights the problem that the UK is facing in terms of slow growth and it appears as though the fallout from the Brexit is finally being realised just over a year after the original vote to leave the European Union.

Boris and Brexit

The ongoing problems with the Brexit negotiations has seemingly been increased yesterday after our very own Foreign Secretary Boris Johnson said that there is ‘no plan’ for leaving the European Union without a Brexit deal.

The recent political instability has not yet gone and with Johnson’s comments causing further frustration for Number 10 I think this could also cause the Pound to fall vs the Euro.

Indeed, if you combine Johnson’s bungling comments with the absence of any interest rate suggestion by the MPC members yesterday this caused the Pound to fall by over 0.5% against the Euro or a difference of £870 on a currency transfer of €200,000.

Therefore, if you have a currency transfer to make over the next few weeks even if you don’t have the full availability of funds then speak with your account manager about how a forward contract may work for you.

Thank you for reading my Euro currency report, if you have any questions about EUR/GBP exchange rates I would be more than happy to discuss them – you can contact me with any queries at teh@currencies.co.uk.

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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.