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% ChangeDifference on £200,000
GBP/EUR0.43%€960
QE cut to €15billion per month from October confirmed

Economic data a boost for the Euro

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.

How long will this Euro strength last?

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.

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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.