This Euro report will examine the factors that could affect exchange rates in the months ahead 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
GBPEUR0.4%€880
Hungary’s defiance of the European Union that sentiment could cause the political scene to change.

ECB Meeting Thursday

The European Central Bank (ECB) meet tomorrow to discuss the future path of monetary policy. Although no change is expected on interest rates or tapering, ECB President Mario Draghi will be taking questions at the following press conference at 13:30 which is often when there is a market reaction for Euro exchange rates. Mr Draghi has been much more tightly lipped of late although it is only a matter of time before he makes a comment which causes a market reaction. There has been an acknowledgment from the central bank that the recent strength of the Euro against the Dollar has been unhelpful. Any developments here or further strengthening against the Dollar could see a response from Mario Draghi effectively talking down the currency which could lead to some Euro weakness, something we refer to in the industry as jawboning.

Catalonia Uncertainty for the Euro

The Euro could come under renewed pressure as developments unfold following the snap election in Catalonia which has created the worst political upset in Spain for forty years.

To recap deposed leader Carles Puigdemont faces possible charges of rebellion, sedition and misuse of public funds after declaring independence following a referendum that was seen as illegitimate by Spain. For the moment the Spanish supreme court has rejected calls to reactivate an international arrest warrant for the deposed leader to move him out of Brussels where he has been residing ever since.

The Catalan parliament has in fact proposed this week that Carles Puigdemont should form the government. In this highly unusual situation it is possible that he may be sworn in with a video link by the end of the month although the Spanish Prime minister Mariano Rajoy has said he must be there in Catalonia in person and that he cannot rule remotely. Spanish authorities are now closely monitoring borders as they fear he may try and return under the radar and take up the presidency of the regional parliament. Expect more fireworks from Spanish politics and more Euro volatility as developments unfold.

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 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.