Last month President of the central bank Mario Draghi made it clear that further stimulus is on the horizon for the EU, in a bid to stimulate growth and inflation.

Alongside negative interest rates, many analysts are suggesting that the bond buying scheme known as quantitative easing (QE) could be on the horizon. With Mario Draghi set to leave his post at the end of October and head of the IMF Christine Legard set to take over, markets are trying to predict whether Mr Draghi will start the QE program before he leaves.

History tells us when a central bank starts a QE program the currency tends to come under scrutiny and is most likely to devalue against its counterparts. It’s been a tough year for the eurozone due to the global slowdown however I expect the euro could come under pressure once more throughout the last quarter of 2019.

Pound falls to multi year lows against the Euro

Pound falls to multi year lows against the Euro

The pound has fallen to multi year lows against the euro due to the monthly falls we have seen since the start of the UK summer. The ongoing Brexit saga I believe will be the main driver for the currency pair and all eyes will turn to MPs within the House of commons at the beginning of next month. Will Boris be overthrown by Tory rebels or is a no deal Brexit inevitable, these questions are an unknown, but these factors look likely to impact pound to euro exchange rates.

For more information on how Brexit could impact your currency exchange feel free to contact the trading floor.

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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.