Euro Set to Strengthen?

As with the UK economy this week there is little data arriving for the Eurozone over the next few days and with less volume of trading going through at this time of year we could see some more volatility for Euro exchange rates.

The Euro has had a very good run against Sterling since the start of the month strengthening by as much as 5 cents since the announcement of QE and the cutting of the deposit rate. It appears as though the Euro could experience more of a fight back going into the end of 2015.

However, one main sticking point for the Euro this week could be the Spanish elections currently being held.

PM Mario Rajoy was recently assaulted highlighting the political unrest in the country at the moment. Spanish unemployment is the second highest in the EU at 21% only just behind Greece and although it has fallen since 2013 when it was 27% the number is still extremely high when compared to Eurozone unemployment at 10.8% and UK unemployment at 5.8%. The uncertainty of who could come in could cause a problem for the Euro but I think Rajoy will be elected for another term.

For more news on Euro exchange rates or information about converting money to Euros, please feel free to email me at teh@currencies.co.uk with any questions.

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