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 over the past week:

Currency Pair% ChangeDifference on £200,000
GBP/EUR1.13%€2,580 EUR
Will the Euro weaken?

Euro hits record levels on uncertainty elsewhere

The Euro has once again hit fresh highs against both the pound and the US dollar making Euros more expensive to buy. There is a belief that this trend is set to continue, partly to do with uncertainty elsewhere. The weekend started well for the Euro with Mario Draghi not mentioning monetary policy directly, but overall reinforcing a market view he has the situation under control. EURUSD has almost hit 1.20 and GBPEUR is in the 1.07’s off the back of this news. Greeks have even been paying their debts with cash machines set to allow withdrawals for the first time in many months. The outlook for the Euro looks positive. A united negotiating front on Brexit and an expected Merkel victory in the German elections should help the Euro to maintain its dominance.

Is there anything that might shake the Euro’s strength?

This week is a raft of important data for the Eurozone with the latest Inflation data and Unemployment data. These two issues were big hindrances for the Euro many years ago but thanks to ‘Super Mario’s ECB (European Central Bank) QE (Quantitative Easing) Bazooka, the tide has now turned. These two releases are scheduled on Thursday and look more than likely to strengthen the Euro. Inflation looks set to rise to 1.4% and Unemployment looks set to hold steady at 9.1%. Any surprises could of course see the Euro weaker but I don’t expect anything major.

A few months ago many clients buying Euros were prepared to hold out for 1.20. Now a near term target is 1.10 and with many forecasters catching headlines with predictions of parity or even worse Euro buyers have the odds stacked against them. If you need to buy Euros and wish to be kept up to date please speak to our trading floor to monitor the latest trends and themes, eventually of course the Euro will weaken but a dramatic move this side of 2018 looks at present unlikely.

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.


Read more articles
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.