The Euro continued to hold steady against the Pound despite impressive UK Retail Sales data released yesterday which showed the strongest Quarter since 2015. More on the reasons behind the improvement in today's Euro report, the table below shows the potential difference in return you could have achieved when selling £200,000.00 to Euros during the past month, highlighting the importance of timing your transfer to maximise your return.

Currency Pair% ChangeDifference on £200,000

One of the main reasons for the Euro strengthening, especially versus the US Dollar, was due to the financial crisis in Turkey seemingly softening after Qatar pledged that they would invest $15 billion into Turkey to help stabilise their economy. The reason this impacts the Euro is that many banks in the Eurozone have large exposure to Turkish debt, and this confidence from Qatar mean that the concerns for the International Monetary Fund (IMF), who are at this point keeping a keen eye on developments, are kept at bay for now.

Turkish and French Presidents agree on building strong trade ties

To add to this, Turkish President Erdogan and French President Macron spoke yesterday and agreed of the importance of building strong economic and trade ties between the two regions, and that the Finance Ministers from Turkey and the Eurozone will meet to discuss this in greater detail shortly. However, this alliance could prove detrimental to the value of the Euro, as the situation was initially sparked by Donald Trump imposing yet more tariffs on Turkey.

Germany’s manufacturing sector continues to struggle

As the Eurozone forms alliances with yet more countries in the firing line of Trump, this could cause the trade war to escalate even further, especially as 51 European and Asian countries are due to meet on 18th and 19th October ministers to plan a retaliation to Trump’s tariffs. Clients with a Euro exposure could benefit from highlighting this to their Account Manager here, so that we can keep you updated as this fast moving situation develops.  

This morning at 10am Eurozone Inflation readings will be released and are expected to remain the same as the previous figure of 2.1%. Since the beginning of the year Inflation levels have been steadily rising, and with no suggestion of this falling the other way, we could see the Euro strengthen if the results remain positive. Clients looking to buy Euros could benefit from moving ahead of this announcement.

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.