This Euro exchange rate update looks at some of the factors that could affect Euro rates in the coming days. The table below shows GBP/EUR movement in the last month and the difference when exchanging £200,000 Pounds to Euros. To keep track of exchange rates visit our live exchange rates page.

Currency Pair% ChangeDifference on £200,000
GBP/EUR2.4%€5,300

Euro benefits from hints of interest rate hikes

Yesterday the Euro suddenly saw a turnaround in the late morning trading session, hitting back heavily at losses against the Pound and US Dollar in a very short period. The tipping point came with the fairly robust tones from the European Central Bank (ECB) on two fronts.

Firstly ECB member Peter Praet gave a speech with the headline comment that the bank’s confidence in economic recovery was on a stronger footing. He pointed to risks to growth outlook being now largely palatable. He also pointed to an easing on price pressure being noted – meaning the Eurozone’s long-term issues with inflation may finally be being relieved.

FED speeches and GDP figures to be released

ECB minutes highlight improved outlook

This was a confidence boosting tone which was doubled down on in the minutes released from the most recent ECB Monetary policy committee meeting. A way out of the current Quantitative Easing (QE) programme was announced. In the June 7-8th meeting the members discussed re-evaluating the heavy leans towards emergency financial stimulus into the Eurozone economy, which has been ongoing for a few years now. This would be done if inflation outlook improved.

Given the speech earlier that day, which suggested improvements to inflation prospects were likely, the sum of both pieces of new information saw an alarming turn in the Euro’s fortunes. Trader’s quickly put the points together and the Euro gained over half a cent against the Pound.

To put this in perspective, anyone selling €200,000 would have gained an additional £1,100 if selling following the news rather than the earlier hours of the morning. This is why it is important to detail any requirements you may have to your account manager here so that opportunities are not missed.

The first two weeks of the month are laden with data releases just like the above and, because of this, you can expect further movement. Tomorrow will show a host of data on Eurozone import and exports for individual countries and again an improvement in the Euro’s value is expected with the news. Sellers may be wise to seize this opportunity ahead of the weekend.

 

Another banking scandal – BNP Paribas

France’s largest bank, BNP Paribas, has a sordid history. In 2006 it was fined $9bn for helping to finance Sudan’s government, breaking an embargo designed to deter the actions of a genocidal regime. Further accusations are now emerging over an even uglier episode – the Rwandan Genocide.

Recent efforts by legal activists have brought to light in June 1994 that BNP had financed a deal for 80 tonnes of weapons to be delivered to the Rwandan army.

Another fine may come should this be proved true. Similar to how the fine against Deutsche Bank of $14bn at the end of last year harmed the value of the Euro, this may be another feature for Euro buyers and sellers to watch out for in the medium term.

If this is verified personally this highlights to me why our service has flourished since our beginnings in 2000. Profit driving activities by banks leads to behaviour which rarely benefits the consumer. Foreign Currency Direct are here to secure you commercial rates of exchange – so if you are buying or selling an international property, I strongly suggest contacting us to discuss the options open to you, and hearing how we can assist you.

Thank you for reading my Euro currency update, 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 at jjp@currencies.co.uk.

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Another banking scandal – BNP Paribas

France’s largest bank, BNP Paribas, has a sordid history. In 2006 it was fined $9bn for helping to finance Sudan’s government, breaking an embargo designed to deter the actions of a genocidal regime. Further accusations are now emerging over an even uglier episode – the Rwandan Genocide.

Recent efforts by legal activists have brought to light in June 1994 that BNP had financed a deal for 80 tonnes of weapons to be delivered to the Rwandan army.

Another fine may come should this be proved true. Similar to how the fine against Deutsche Bank of $14bn at the end of last year harmed the value of the Euro, this may be another feature for Euro buyers and sellers to watch out for in the medium term.

If this is verified personally this highlights to me why our service has flourished since our beginnings in 2000. Profit driving activities by banks leads to behaviour which rarely benefits the consumer. Foreign Currency Direct are here to secure you commercial rates of exchange – so if you are buying or selling an international property, I strongly suggest contacting us to discuss the options open to you, and hearing how we can assist you.

Thank you for reading my Euro currency update, 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 at jjp@currencies.co.uk.

 

 

 

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.