This Euro report will examine the factors that could affect exchange rates in the coming weeks to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low for the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
After trading at its lowest level to convert Euros into Sterling in 9 months last week the Euro has started to fight back. Eurozone Inflation figures came out at 1.3% which was in line with expectation and taken well by the economy as well as the single currency.
With inflation remaining on target this is encouraging for the European Central Bank who have suggested recently that they may be looking to reduce their current monthly spending of €30bn. Eurozone Unemployment figures for December also came out as expected with the data confirming the lowest levels in over 8 years, which highlights how well the Eurozone economy is performing at the moment.
ECB President Mario Draghi has been rather cautious when discussing monetary policy recently. However, in my opinion I wouldn’t be surprised to see QE reduced during the course of this year especially if jobs growth remains strong as well as inflation rising.
The Euro is still close to record highs vs the US Dollar and with the US Treasury Secretary Stephen Mnuchin not appearing to be too concerned about the weak Dollar, this is another reason why the Euro remains strong against both the US Dollar and the Pound. Indeed, the Euro is at its best level to buy US Dollars since December 2014.
Eurozone GDP figures confirmed that the continent grew at its fastest levels in a decade during 2017 with data showing growth of 2.5%. This provides evidence that the QE programme and historically low interest rates has had the desired effect.
Therefore, combined with the positive unemployment figures as well as inflation levels this is another reason why the Euro has had a good week so far vs the Pound.
With political uncertainty ahead with the ongoing problems in both Spain and Italy I think we could see some problems further ahead for the single currency.
Carlos Puigdemont still remains in Belgium and with the Italian elections due to take place on 4th March I think we could see some weakness coming for the Euro. Therefore, if you’re in the process of selling Euros it may be worth getting things organised in the short term to take advantage of these current 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.
Always helpful and extremely efficient. You have saved me a great deal of money over the last 10 years I have lived in Cyprus.
Excellent overall experience, helped by professional advice, quick and simple transaction and a very competitive rate.
Very efficient and professional. Excellent customer service.