The euro lost ground against the pound during yesterday’s trading, following from the release of European Industrial Production figures which came out below expectation in December at -0.9%, showing a contraction in the volume of production for factories and manufacturers, falling for the second month in a row. The Eurozone economy has been struggling of late, with less than impressive data releases dampening investor hopes of a rebound for the euro, which is also one of the main reasons GBP/EUR remains rangebound despite so much Brexit volatility for the pound.
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Political upset within the Eurozone is also keeping the euro’s value low, fuelled by the announcement yesterday that Spain’s Government had rejected Prime Minister Pedro Sanchez’s draft 2019 budget by 191 out of 350 votes. Sanchez came into power in June 2018 after his predecessor Mariano Rajoy was forced to resign following a vote of no confidence after accusations of corruption. This has left Mr Sanchez with no choice but to keep his promise made earlier this week, that if he lost the budget vote he would call a snap election, and reports suggest this could either be held on 14th or 28th April.
Officials suggest that his decision will become clear tomorrow after a weekly cabinet meeting, however opposing parties have urged him to call an election immediately. As Spain is the Eurozone’s fourth largest economy, this uncertainty could cause the euro to weaken further, as political unrest is historically known to deter investors, pushing them to holding their funds in other safer currencies. Clients with an upcoming euro transfer requirement would be wise to keep a close eye on this situation as it unfolds.
This morning at 10:00am the latest set of preliminary European Gross Domestic Product (GDP) data for the final Quarter in 2018 will be released, and is expected to remain the same as the previous reading of 1.2% year on year. If there is any deviation from this figure, I would expect movement on euro exchange rates, so get in touch with us ahead of this release if you have a particular target rate you wish to achieve.
All the staff I spoke with were helpful ,courteous and knowledgeable. The service is efficient and FCD make the exchange process hassle free.
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Efficient, friendly, personable – I have used this service several times and will not hesitate to call on them the next time a foreign currency transfer is required.
Quick, competent and friendly: a reassuring excellence of service, which I heartily recommend to every potential client.