This afternoon Angela Merkel and President Macron are due to meet in Paris to discuss the proposed Banking Union for EU members. This Euro report discusses the factors that have the potential to affect EUR rates over the coming months. The table below shows the difference in Euros you could have achieved when buying £200,000.00 during the high and low points during the past 7 days.
|Currency Pair||% Change||Difference on £200,000|
Those looking to buy Euros with Sterling have enjoyed a steady rise this week as the Pound hit the mid-1.13s for the first time since the end of February. Sterling has barely managed to hit these levels a handful of times since the start of the year and has systematically been forced to surrender its gains just as the Euro continues to impress the markets with steady growth in economic data.
There is every chance we will see a similar story today, with key employment and inflation levels due to be released at 10:00am this morning. Although the year on year readings are expected to stagnate, the month on month releases look set to show a pick up suggesting the Eurozone is still holding its strong momentum. Despite President of the European central bank Mario Draghi’s best attempts this week, I feel if the Eurozone continues to post positive readings, investors will continue to back a favourable change in monetary policy from the ECB, which in turn will make the Euro more expensive to buy. As a result, if you are looking to buy Euros with Sterling short term, it may pay to get in touch before these releases today, just in case we see Sterling’s gains reversed.
This afternoon, German chancellor Angela Merkel will arrive in Paris to meet with French President Macron in a bid to kick-start their joint venture in constructing a fresh, revolutionised European block via the creation of a Banking Union for EU members.
This could hold significant importance for both France and Germany. Macron’s victorious campaign last year hinged strongly on efficient banking reforms to attract more international investment to the country.
Equally, Merkel’s Grand coalition was essentially formed only through giving in to the Social Democrat party’s demands for better financial integration with the EU.
If both can agree on the finer details and push through these reforms quickly, I would certainly be expecting to see the Euro rise in value. A fully integrated Europe will always be an attractive proposition for investors.
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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