This Euro update looks at the factors that could effect the rate of exchange for your currency transfer in the short term. The below table shows the difference in Euros you would have achieved when buying £200,000 yesterday.

Currency Pair% ChangeDifference on £200,000
GBP/EUR1%€2300

Run on Spanish Bank – Euro Uncertainty

The Euro may look set to come under considerable pressure once again as the problems with the Spanish banking system resurface. Banco Popular with its €37 billion of debt was sold for €1 last week to Santander after there was a run on the bank by savers. It was reported that savers were taking €2 billion out per day hence the needed rescue.

Already another Spanish bank Liberbank is also reported to be having problems and other examples are expected to be seen going forward. Those clients who are holding Euros in Spanish banks who wish to bring them back to Blighty would be wise to consider their options. Rates are incredibly attractive for selling Euros after the British election uncertainty and there is a great opportunity to convert back into pounds which may not be around for too much longer once the dust settles.

Brexit Negotiations Stance from EU Softens

In a sign of how tricky the Brexit negotiations will be for both the UK and EU27 the mood could be changing on the continent. The prospect of delays and additional political uncertainty in the UK could be pushing some EU leaders to take a slightly softer stance.

Angela Merkel was reported to have said “We say that we want to remain a good partner to Britain. Britain is part of Europe, even if it will no longer be part of the European Union”Meanwhile Chief negotiation Michel Barnier said over the weekend “Let’s put our minds on striking a deal”.

EU data is fairly light this week although a ZEW economic sentiment survey this morning should highlight how optimistic investors are for the EU economic outlook. Industrial production numbers tomorrow are expected to show an improvement on the month which could lend a degree of support to the Euro.

For more information on how your transfer of Euros could be affected by future data releases, 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.