This Euro report will examine the factors that could affect exchange rates this week in order 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 yesterday.
|Currency Pair||% Change||Difference on £200,000|
The Euro has been the investors currency of choice of late and yesterday’s data releases affirmed this. Not only has political risk disappeared, Greece returned to the international bond markets, rumours that the Eurozone will announce a change to its Quantitative easing programme, now economic data seems to support the positive strides as well.
Unemployment data for the Eurozone hit an 8 year low yesterday, dropping to 9.1% in June, 0.1% less than May. This provides further support that the economy continues to strengthen, following on from last week’s well received growth figures from France and Spain, two of the weaker economies of recent times within the Eurozone.
Furthermore, the preliminary inflation report for the Eurozone yesterday also provided investors with more data to digest. Expectation is for the Eurozone’s inflation to have lifted ever so slightly during July. This data release is of significant importance as it means that the European Central Bank will likely announce when it is going to make changes to its Quantitative Easing programme.
Currently, anyone looking at buying Euro’s will be asking when they think the Euro will start to weaken. Well current economic data releases have done little to ease the pressure. What’s more is that investors will be looking at the Euro following the UK’s political and economic situation and the recent fallout in the USD following President Trump’s inability to pass his own laws.
However, a Strong Euro means that Eurozone exporters will receive less in profits. With global firms such as Volkswagen and Peugot based in the Eurozone likely to be heavily impacted. I think that Mario Draghi will at some point have to Jawbone the Euro (deliberately talk it down) so that exports aren’t heavily impacted. The only thing that’s unclear is when this is likely to happen, I would personally be in contact with us at FCD so that we can keep you updated.
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 here.
First class foreign currency provider, great rates and outstanding customer service.
Great service very professional but with a personal touch. Everything went smoothly with no fuss. Would highly recommend.
It was really refreshing to go through a process that had absolutely no hiccups at all, the service that we were offered exceeded our expectations. We would unreservedly recommend the company to anyone seeking to exchange currency.
Very efficient service. I’ve never used a service like this before & was purchasing a house in France. It was all explained very well & I was kept informed all along the process. Putting a deposit down to pre-book the rate also saved us a fortune.