The Euro has been on a bullish run of late, leaving those of our clients converting Euros into Pounds basing their trades off some of the best levels in almost a decade. More information on this run of Euro strength in today's market report. The table below shows the difference in Euros you could have achieved when selling £200,000.00 during the high and low points of the past year.

Currency Pair% ChangeDifference on £200,000
GBPEUR2.74%€6104.17

The rate has bounced off of 0.90 twice in the past two days, demonstrating the resistance against a move past 0.90 but these are the best levels of 2018, and the best since September of last year also.

Apart from a 1-and-a-half-month period in 2017, Euro sellers would have to go back to 2009 to be able to achieve better levels for conversions into Pounds, so if you have an upcoming transfer involving this pair it’s worth making us aware as there are ways you can secure the rate early should you wish to.

Will the US Dollar continue to weaken against the Pound?

Reasons behind the Euro's strength can be attributed to the fears of Turkey defaulting on European Banking debt easing, along with investors avoiding riskier assets at a time where Donald Trump in the US is under pressure. The Euro has been a major benefactor of these fears which are covered in the US Dollar section of the report, and part of this is due to the EURUSD pair being traded more than any other currency pair. In essence, as traders bet on the US Dollar losing value, they are simultaneously betting on the Euro strengthening when trading EUR/USD. This has boosted the Euros value and it’s gained on the USD for 6-consecutive days. Do get in touch if you wish to discuss this matter in further detail. There has also been a raft of Italian bond purchases which has boosted the Euros value, and this has taken place after a renowned ratings agency (Moody’s) has opted not to downgrade the country after reviewing the countries fiscal path and reform agenda.

Potential for a busy day for Euro exchange rates

Today is by far the busiest day for economic data releases out of Europe.

There will be overviews of the manufacturing and services sectors from France, Germany as well as the Eurozone as a whole this morning, with the latter being the most significant. It will be released at 9.00am this morning with Manufacturing expected to show a drop to 55, and Services a slight gain to 54.4 from the previous figures. The data will be released by Markit Economics and covers the business conditions in the sector with a forward-looking outlook, so expect price fluctuations if the official figures differ.

Then at 12.30pm today there will be a European Central Bank policy meeting, which will contain an overview of economic and monetary developments. Any allusions to monetary policy changes could result a major movement for EUR exchange rates.

If you wish to be updated in the event of major movement, do register your interest with us. 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.