This afternoon, ECB member Benoit Coure is due to speak which could have an impact on exchange rates if he makes any hints towards political change. The table below shows the difference in Euros you could have achieved when buying £200,000.00 during the high and low points this week.
|Currency Pair||% Change||Difference on £200,000|
One of the factors that is impacting the Euro of late is the persistent strength of the Dollar, leading to a large flow of money out of the Euro and into the Dollar over the course of 2018 so far.
In fact, earlier in the week we saw Euro exchange rates drop to their lowest point against the Dollar for the whole of 2018 but this has done little to impact the value of the Euro against the Pound like you may think it would.
The issue is that both currencies are having a fairy tough year both mixed with poor economic data and numerous political issues that just do not seem to be going away.
For the Euro specifically, we have recently had issues between the new Italian Coalition and the European Central Bank to the point where head of the European Central Bank Mario Draghi, who usually tends to be excessively positive even in the face of adversity commented that he had concerns about political fractures within the Eurozone.
Political instability can weigh heavily on a currency so should these issues get worse then the Euro may start to weaken further against all major currencies.
European economic data has also disappointed this week, most specifically services and manufacturing data around the Eurozone missing expectations on Wednesday morning.
Today is reasonably quiet on the data front for the Euro, however we do have ECB member Benoit Coure speaking later on this afternoon so we must be wary that even the slightest hint to economic change or political concerns may lead to Euro volatility without any prior warning.
Next week is extremely busy on the data front with consumer confidence, inflation, unemployment, manufacturing and growth figures all due out over the course of the trading week.
If you have a Euro exchange to carry out in the near future and you would like to know when these releases are due and how they may impact the cost of your exchange then feel free to contact our trading floor on 01494 725353 and one of our experienced traders will be able to help you.
GBP/EUR is currently sat in a very tight range and I personally feel that next week there is enough data coming out that should help the pairing leave the range, which way will be dependant on political progress and how the data fares.
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