This Euro report will address the factors that could have an effect on Euro exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved when purchasing £200,000.00 at the low and high levels during the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
The Euro is now trading at its best level against the US Dollar in three years after having its best year against the Dollar since the Euro was first created.
The Euro is also remaining strong against the Pound after the German political situation appears to be getting sorted. Chancellor Angela Merkel has finally managed to get a deal between the other parties in order to take things forward after weeks of uncertainty. There are still a few details to be ironed out but it looks like it is only a matter of time.
As with the UK, inflation will be making headlines this week as the Eurozone releases their own Consumer Price Index for December tomorrow morning.
The expectations are for year on year for 1.4% and as the single currency is in a strong position as well as strong growth in the Eurozone another solid report could be good news for the European Central Bank.
They have also suggested that they will be looking to bring their QE to a close in the future and then look at starting to raise interest rates so tomorrow’s data could give us a hint as to what we can expect from the central bank moving forward.
Although the Euro is clearly in a very strong position at the moment against both the Dollar and the Euro exchange rates are cyclical, and I think we could see a shift in the value of the single currency in the future. The Brexit talks will recommence in a few weeks as well as the Italian election due to be held on Sunday 4th March.
At the moment it is unclear who will lead the country in the next couple of months and there are even suggestions that Berlusconi may even make a shock comeback. As we saw with the UK’s general election, uncertainty can have a big effect on the currency involved so if you’re looking to selling Euros it may be worth taking advantage of current exchange rates.
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.
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