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:

Currency Pair% ChangeDifference on £200,000
GBPEUR3.12%€6,187 EUR
Euro remains a very risky currency to be betting against

Euro remains a very risky currency to be betting against

The Euro has started 2018 strongly rising to a 3-year high against the US Dollar. Were it not for this recent form the Pound to Euro rate would be much higher but the two are effectively cancelling each other’s strength out. In time something will give and clients concerned with GBPEUR should be keeping in touch with us ahead of a potential sudden shift.

Current interbank rates are in the 1.12 range, a continuation of the range bound levels of 1.10-1.145 seems likely for January but nothing is ever guaranteed on exchange rates.

Clients looking to buy or sell Euros would do well to take advantage of the lack of volatility and ensure they are making plans for what lies ahead.

Of course exchange rates never sit still and developments on Brexit and shifts in central bank policy from both the ECB and BoE will see shifts on exchange rates.

Key information on the Euro is Eurozone Inflation data tomorrow at 10 am, economic data will be very important this year as investors eye the ECB (European Central Bank) and any potential change in economic policy. Their QE (Quantitative Easing) program has been in place since 2015 and was reduced to €30bn last year. Already this month we have had hints of the ECB raising rates by the end of the year, such sentiments and a lack of clarity at this point will give rise to further volatility in the coming weeks. Next Thursday’s ECB decision will give us further clarity and is the next major event for the Euro.

European Politics will continue to be important in 2018

2018 has plenty in store politically for the Eurozone with the German coalition government still to be finalised. The Catalonian situation is still requiring attention and in March the Italian election could throw up a whole new set of concerns. In Germany we are still waiting for the Social Democratic Party to rubber stamp the agreement. Carles Puigdemont is attempting to govern via skype, a situation the Spanish government is trying to resist. Whilst such issues have potential to weaken the Euro markets appear to be overlooking the troubles for now.

The Euro is not the only place suffering politically right now, the UK government is hanging by a thread and Trump is one of the most unpopular Presidents ever, just expecting the Euro to fall sharply on this news could lead to disappointment.

For any UK clients looking to sell a property and move to the Eurozone in 2018 the start of a new year is a good time to familiarise yourself with the currency markets. The average UK home is £223,000, the 12% movement on GBPEUR in the last year would see a difference in budget of €28,000 underscoring the importance of not neglecting to plan ahead for your currency exchange.

Thank you for reading my Euro currency report, if you have any questions about Euro exchange rates I would be more than happy to discuss them – you can contact me with any queries 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.