This update looks at factors that could impact Euro exchange rates in the next week.

Greece once again a topic of discussion

Fears over the global economy would seem to have subsided in recent months, and it seems like some time since China’s slowdown was dominating the financial headlines. Greece however is a different story and it’s resurfacing within financial news and ECB discussions have left investors in a bearish mood regarding the health of the Eurozone.

Risk sentiment within global markets has generally been increasing and this has been reflected in equity markets. Oil this week hit a 7 month high and it’s now trading at over $50 a barrel so overall markets are bullish, although from a personal perspective I’m not filled with confidence by the EU, and I’m expecting the Euro to continue its decline for a number of reasons.

The talk of Greece’s inability to repay its debts, the disenfranchisement of the German people, many of which feel as though they’re shouldering to much of the burden in Europe, the refugee crisis, the upcoming EU Referendum and previous talk from ECB President Mario Draghi regarding the potential artificial weakening of the Euro should inflation continue to disappoint, all paint a negative picture for the value of the Euro moving forward for me, and I think unless there is a ‘Brexit’, we’ve already seen the best EUR/GBP conversion levels this year.

Busy week up ahead for the Euro with the potential for high volatility

Clients of currencies.co.uk with an upcoming Euro requirement may wish to contact their broker later today or at the beginning of next week, as there’s a hectic week of news releases scheduled.

German Unemployment Data (both the rate and monthly changes) is out on Tuesday at 8.55am, then just 5 minutes later Eurozone Consumer Price figures are released and these releases are expected to be some of the most important releases for the week so on Tuesday morning, investors can expect potential volatility within exchange rates.

The major news releases don’t stop there as at 8.15am on Wednesday Swiss Retail Sales figures (yearly) are set for release, then on Thursday the ECB Interest Rate Decision and subsequent ECB Monetary Policy Statement could cause further volatility. Feel free to get in contact if you would like to plan around these events.

Thank you for reading my Euro rate forecast, 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 at jxw@currencies.co.uk.

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