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 on Euros you would have achieved when buying £200,000.00.
|Currency Pair||% Change||Difference on £200,000|
EU Gross Domestic Product numbers are released this morning and will be keenly watched by the markets as they could signal a change in monetary policy from the European Central Bank. To give us a taste of what may come today in the overall numbers, German GDP released yesterday arrived at 0.6% in the second quarter which although slightly less than forecast was still better than the UK on annual basis. The economic outlook in Germany remains extremely positive and this will be key in the upcoming German elections.
The strong economy will play in to the hands of German Chancellor Angela Merkel as we approach the German election 24th September 2017 where she stands a very high chance of being re-elected for a fourth term.
Expect Euro volatility in the coming weeks now that her election campaign has commenced although the polls to date have her in the lead by some way. The Euro is likely to see additional gains on a Merkel win. At present, there is an excellent opportunity available for those clients selling Euros and it would be wise to consider taking advantage of the strong Euro.
Michel Barnier, the EU’s chief negotiator responded yesterday to the government’s proposal for a temporary customs agreement. He made clear once again that agreement on citizens’ rights, settling accounts and Ireland must be agreed before a future relationship can be discussed. Meanwhile Belgian Prime Minister Guy Verhofstadt described the proposal as a fantasy. Brexit secretary David Davis has hinted Britain will be able to negotiate and sign new trade agreements whilst in any new transitional arrangement after 2019 when Britain leaves the EU. In a sign of strained relations David Davis also stated that “Michel is getting quite cross with us.”
As more British proposal papers are released in the coming days there is likely to be considerable market reaction for the Euro and the pound as these Brexit negotiations continue.
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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