With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. This report addresses the factor that are likely to affect exchange rates over the next few weeks. The table below shows the difference in Euros you would have achieved when buying £200,000 over the last week.

Currency Pair% ChangeDifference on £200,000
GBP/EUR1.79%€3,984
Euro falls from its 8-year highs versus the Pound

Euro remains the best of a bad bunch

Of the major currencies the Euro has been one of the best performing in 2017 this week hitting fresh highs against the US dollar and also the pound. As is typical on the currency markets the spike did not last very long and the Euro soon lost favour resulting in a 2 cent swing back in favour of Euro buyers with pounds within 24 hours. Such movements are typical of the currency markets and reminds us the absolute importance of highlighting your position to your account manager here should events take a sudden twist.

Today is a fairly light day of economic data but we have Trade Balance data due at 10am. The Eurozone economy is performing well of late and there are no surprises expected.

One important point to be aware of is today is a bank holiday in France so Happy Bastille day to our French compatriots! Please bear this in mind for any urgent payments as this will mean any transfers in and out of France might take an extra day to arrive or be received.

1 week high for Euro buyers

Okay so a one week high isn’t too much to shout about but considering we are close to 2 cents above the lows for Euro buyers with pounds this week, I think it is worth pointing out. When we look to next week and the commencing of the second round of Brexit talks, the current level looks even more attractive. The UK appears to be failing to grasp the complexities of what really lies ahead. Do Boris, Davis and co really have what it takes? Negotiating is a bit like poker. You can make some bluffs on the way but bluff too much and you will be found out to your cost.

The improvements for Euro sellers on Wednesday was short lived and once again highlights how important it is to be prepared for market movements by highlighting your positon to us. All it takes is a few minutes to speak to your account manager here who can discuss relevant strategies to help you maximise the position. If we can get it right for you the saving from a well-timed deal can be thousands as well informed Euro sellers found out on Wednesday.

Next week is some key economic data on the Euro with the European Central Bank (ECB) meeting which will surely trigger some movements. If you have a transfer buying or selling Euros, the news next week could easily change the picture so today could be the perfect time to be making some plans. Personally if buying Euros I would be taking advantage of any spike in the market. With European political uncertainty much less than the UK or US the Euro will in my opinion remain an expensive currency to be betting against.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me 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.