This 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 during the past week.

Currency Pair% ChangeDifference on £200,000
GBPEUR-1.25%€2791.58
Euro rates following Italian Coalition talks

Euro boosted after surprisingly good data out of Germany

During yesterday’s trading session the Euro saw its biggest upward spike in more than 2-months on a trade weighted basis, after Germany, the engine room of the Eurozone posted some better than expected GDP figures.

My colleague Lewis Edmonds brought this along with the ZEW economic sentiment survey to our clients' attention yesterday during his market report, which just goes to show the importance of being on top of economic data releases as clients able to take advantage of the spikes would have been trading at almost a 1-month high when converting Euros back into Pounds.

Germany is now on track for a 3% annualised GDP figure which is Euro positive, but I think that those holding Euros and waiting for the right time to make a transfer should also consider how a number of underlying issues may scupper the Euros good position, with the heavily publicised Catalonian independence issue being one of the main issues along with stubbornly low inflation levels within the Eurozone.

What data could impact Euro exchange rates in the short-term future?

Economic data out of the Eurozone is relatively thin for the rest of the week, although I do think Thursday’s inflation data for the region, which is released at 10am could impact markets especially if the figure deviates substantially from the 0.9% figure expected.

Mario Draghi will be speaking early on Friday morning and markets tend to follow his words closely in case he alludes to future monetary policy, and being the President of the European Central Bank you can understand why so feel free to let us know if you wish to be updated to any major moves for Euro exchange rates.

Aside from these data releases I would also like to make clients holding Euros aware that JP Morgan is expecting to see the Pound climb in 2018, and yesterday re-iterated their Long stance on the Pound which in essence means they think it will climb in future.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

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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.