Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting Euro exchange rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
The European Central Bank (ECB) held interest rates yesterday as widely expected at 0.25%. It wasn’t the most exciting meeting with one journalist referring to paper aeroplanes being thrown around the room ahead of the festive break.
The ECB highlighted that interest rates are expected to remain at their present levels for an extended period of time.
The central bank went one step further when it said that “we stand ready to increase the asset programme in terms of size and or/duration”. The cautionary and dovish note should prevent the Euro from making strong gains in the near future until the economic picture looks more stable.
UK Prime Minister Theresa May is in Brussels today concluding the first round of Brexit negotiations where high volatility for GBP EUR is to be expected. An upbeat outlook should help see the Pound strengthen against the Euro.
EU President Donald Tusk said yesterday “I have no doubt that the real test of our unity will be the second phase of Brexit talks” highlighting how complex this negotiation in 2018 will be. Clients with a pending requirement may wish to take the risk out of the volatile markets before Christmas. Those clients looking to sell Euros for pounds may be wise to consider moving before the summit ends later today to avoid disappointment. A simple forward contract can be used if funds are not fully available to lock in a rate of exchange and remove the uncertainty from the currency markets.
In other politics the regional election in Catalonia approaches with a date set of 21st December. Tensions are high after one man was killed for wearing Spanish colours in Catalonia. The election result is expected to be very close between the numerous candidates, some of which are campaigning from prison or in Belgium. Expect Euro volatility on the back of how pro-independence the elected parties are.
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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