The Euro could be about to face some difficult tests after it has been reported that Italy may require a form of Quantitative Easing (QE) from the European Central Bank to protect its economy. The potential ramifications of new monetary policy measures on the single currency is discussed in today's market report. The table below shows the range of exchange rates during trading hours on 29/08/2018 showing the importance of timing your transfer to maximise on your return.
|Currency Pair||% Change||Difference on £200,000|
The ECB of course is about to conclude its asset purchasing scheme so this could prove difficult to achieve in principle. The end of QE and political uncertainty has seen investors dumping Italian debt whilst borrowing costs are at a time when Government debt has been running at about 130% of GDP. With such high levels of Government and consumer debt in Italy there is always the potential for another crisis. In a sign of how serious the situation could be the US President Donald trump has even reportedly offered to buy up some of the Italian debt.
EU consumer confidence is released this morning although tomorrows Gross Domestic Product data for August is likely to be more interesting for Euro exchange rates. Inflation and growth have remained stubbornly subdued in the Eurozone and any pick up in the growth outlook will be seen as welcome by the ECB and could help lift the Euro.
Clients looking to sell Euros to buy Pounds would be wise to consider taking advantage of the current levels which are close to a 1 year high for the EUR GBP pair. After the strong comments from EU Brexit negotiator Michel Barnier yesterday who suggested Britain would be offered a deal that had never been offered to a third country before, this could be the turning point in Brexit after a long and drawn out couple of years. Assuming a deal is reached then there would likely be a sizeable shift for EUR GBP with the Pound strengthening on renewed confidence. We are not there yet but this could be the start of some new direction in these negotiations although I would stress there is still some way to go.
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.
I had the money from the sale of our villa in Spain transferred to my bank account in the UK. My contact was James and they handled every aspect of the transfer quickly and efficiently and after agreeing the rate the money was in my uk bank account the same day.
Foreign Currency Direct are simply the best! I have been using them for the last 16 months since buying our home abroad. I regularly need to transfer money into Euros to pay for bills & they always make the transactions very simple & easy to do.
Professional and a first class service, thanks to James and the payment team!
Always quick efficient and good rates and on time with transactions. Brilliant