This Euro report looks at the current forecast for Euro exchange rates, with the Eurozone economic growth expected to slow during 2018. In the table below you’ll see high to low GBP/EUR exchange rate movement when exchanging £200,000 to Euros yesterday:
|Currency Pair||% Change||Difference on £200,000|
The EU’s chief Brexit negotiator Michel Barnier was in Ireland yesterday meeting leaders with regards the issue of the Irish border. He was more optimistic when he suggested that there is still time for a solution on the border although progress must be made by June. He did also reiterate that there was still a risk of a no deal scenario as a reminder that there is still a long way to go in these negotiations. Those clients looking to buy or sell Euros with pounds are likely to see a lot more volatility from any developments and whether agreement can be reached for a close partnership for the UK and EU going forward.
The week has started badly for the Eurozone after German retail sales data from March dropped sharply. Retail sales fell to -0.6% against expectation of 0.8% highlighting pressures in the largest economy in the EU. German Consumer Price Index inflation data also released yesterday unexpectedly fell in April to 1.4% against expectation of 1.5% which will raise some eyebrows at the ECB. Inflation also fell by similar amounts in both Italy and Portugal.
With no European economic data releases today attention moves to EU Manufacturing data from the Purchasing Managers Index as well as important Gross Domestic Product numbers both released tomorrow morning.
EU Consumer Price Index inflation data is released on Thursday for the whole bloc. A small pick up to 1.4% is still expected although after the weaker individual data yesterday this might be a tall order. Whilst a rise in inflation would be a welcome it is unlikely to be sufficient enough to change the stance from the ECB at present which has been more dovish of late. The Euro could find itself losing some more ground as the data so far is still not strong enough to indicate a sustained economic performance.
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.
James and his colleagues are always courteous and helpful. I have also never been able to find rates of exchange that are more competitive. I am particularly impressed with the service, as I am not in the habit of transferring massive amounts!
As always a really quick and easy transaction. James is very knowledgeable and helpful. Great rates.
Always helpful and they always give rates at the very top of the range. Quick transfers to our french bank account – highly recommended. Well done James Lovick 😉