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||% Change||Difference on £200,000|
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.
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.
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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Successful transfer to France. I have used Foreign Currency Direct several times. Nothing is too much trouble to explain, and when it comes to the actual transfer, it takes place on time without fuss. Never had a problem. Thank you Joseph!
Very efficient and responsive. We had great service from Joe Wright who helped us (patiently and with humour) through our currency purchase and was then able to guide us through the process of sending money to France for our property purchase.
Joseph treated us very professionally as well as friendly, and advised and went beyond his duty. Would recommend and use him again.