This report will examine the factors that could affect exchange rates this week in order to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low during the past month.

Currency Pair% ChangeDifference on £200,000
GBPEUR3.2%€7,200
Resignations & Brexit White Paper

Pound gains against the Euro could be short-lived after positive forecasts for the Eurozone

The Pound managed to claw back some of its losses against the Euro last week, with some impressive data from the industrial sector, however this spike could be short-lived, with political uncertainty continuing to weigh on the Pound, coupled with the fact that the Eurozone is performing consistently well.

A report from the European Commission at the end of last week, which released economic growth forecasts for the remainder of this year and in to 2019, suggested that the recovery in the Eurozone is accelerating at a consistent pace, with Germany leading the way.

If uncertainty in the UK continues and the Eurozone maintains its growth at the expected rate then I believe the Pound could remain under pressure for the foreseeable future. As such anyone buying Euros may be wise to move on any short-term spikes in their favour.

Data this week that could affect the Euro

Looking ahead to this week, tomorrow looks set to be a key day for the Euro with a raft of data releases including German and Italian GDP figures, followed by Eurozone GDP figures as a whole for Q3 of this year and industrial production for September. All of these data releases have the potential to impact on the value of the Euro and could therefore provide opportunities for any clients looking to buy or sell Euros. If these figures match the positive sentiment of last week’s European Commission report, then we could see a spike for the Euro.

Thursday also has the potential to create volatility for the Euro on the back of inflation data released at 10am. This will have particular influence following on from the ECB’s recent decision to cut back their current asset purchasing programme by €30bn per month. Inflation across the area has been particularly low for some time and is currently quite a way below the bank’s target of 2%. The early expectations are that we may see a drop in inflation compared to the same period of last year, so keep in touch with your account manager here as there could be some shifts in the Euro’s value before and after the data release.

Thank you for reading my Euro currency report, 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 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.