This Euro report will examine the factors that could affect EUR exchange rates next week in order to help you stay informed if you need to make a currency transfer.In the table below you’ll see high to low GBP/EUR exchange rate movement when exchanging £200,000 to Euros yesterday.

Currency Pair% ChangeDifference on £200,000
GBP/EUR1.65%€3740
Business confidence led by Germany

Mario Draghi Lifts the Euro

The Euro saw considerable volatility yesterday and excellent gains across the board following the European Central Bank meeting and press conference held by ECB President Mario Draghi where future monetary policy was discussed.

Although interest rates and stimulus measures were unchanged Mario Draghi this time offered a very dovish tone having found the markets misinterpreted his comments a few weeks ago which resulted in considerable market reaction and strong gains for the Euro. He highlighted yesterday that there has been a strong recovery which points to a better outlook but made clear that he was in no hurry to jump too early and tighten policy and jeopardise the recovery process.

The crucial detail was that he said that no precise date had been agreed to discuss changes in the future but he did let on that discussions should take place in the Autumn with regards a potential tapering of its asset purchasing programme. This had the effect of pushing EUR USD to 14-month high but it means that that we will have to wait until September before any decisions are made.

Despite his well-planned and softer stance, the Euro still saw strong gains against all of the major currencies including the Pound and US dollar. Clients looking to sell Euros for Pounds have been presented with an excellent opportunity which may be worth taking advantage of. If Mario Draghi is forced to backtrack on his comments for a third time in recent months then the Euro could see a sharp correction once again.

EU data is light both today and next week as we approach the end of the month. The Brexit negotiations, Italian and Greek debt as well as the migration crisis will almost certainly remain the talking points and still present considerable risk for Euro exchange rates. For the moment though the feeling is that the ECB will seek to taper its asset purchases in the next couple of months and this is helping the Euro.

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 at jll@currencies.co.uk.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.