This Euro update discusses the reason for recent Euro weakness and the factors that could impact EUR exchange rates this week. In the table below you’ll see high to low Euro exchange rate movement when exchanging £200,000 to Euros in the last week.
|Currency Pair||% Change||Difference on £200,000|
Euro exchange rates continued to drop off ever so slightly during trading yesterday, following on from the German elections over the weekend.
German Chancellor and leader of the Christian Democratic union party won convincingly, however this was still the worst result for the party since 1949 and will lead to her needing to build a three-way coalition in order to form a Government. This dented the Euro once the Asian markets opened on Sunday night and the Euro remained out of favour throughout most of trading yesterday. Markets will now wait for the coalition to be formed and with it being likely that the FDP party (said to be business friendly) being involved the Euro may gain back a little strength once this is sorted.
The performance by the far-right party in Germany echoes potential issues we saw in France earlier this year, and does highlight that despite a slight economic recovery for the Eurozone there are still a huge amount of political hurdles to overcome.
We are fairly light in terms of economic data for Europe today and tomorrow, however it does heat up a little from Thursday onwards.
Thursday morning we have consumer confidence figures at 10:00am, a member of the European Central Bank speaking at 12:10pm and German inflation figures at 13:00pm.
Friday morning is perhaps the busiest for Euro exchange rates with a flurry of data throughout the morning along with it being the last trading day of the month, this can lead to wild swings as the afternoon progresses.
German unemployment and retail sales data and European inflation data are the most notable of the releases which could lead to a busy morning.
For the very latest movements or an up to date exchange rate for GBP/EUR feel free to contact us today on 01494 725353 and we will be more than happy to keep you up to date with the very latest action.
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