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% ChangeDifference on £200,000
GBPEUR1.15%€2560
Mario Draghi Speech Today

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.

Selling Euros?

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.

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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.