With a lot on the UK’s plate in the realm of politics at the moment, you would be mistaken for missing the increasing number of issues facing the Eurozone this month. The Euro report below discusses the political and economic factors likely to impact the single currency amid ongoing Brexit talks. The table shows the range of GBPEUR exchange rates throughout the past month, and the potential difference in return you could have achieved during the high and low trading points.

Currency Pair% ChangeDifference on £200,000
Fresh uncertainty around on the Euro

The protests in Chemnitz, Germany have been well documented and demonstrate the strain on German chancellor, Angela Merkel at the moment. There have also been further issues this week after Germany’s coalition leaders have decided to replace their head of the domestic intelligence agency, Hans-Georg Maassen, for allegedly having political bias. This matter rumbled on for 11-days and it’s the most recent setback to the 6-month old coalition who appear to be joined by fear rather than shared political views.

The third biggest party in Germany, the Alternative for Germany have also had to take steps to penalise members over suspected links to militants, and over in Hungary their leader is being threatened with sanctions as he refuses to comply with EU rules.

This is a sensitive time for the EU, and I expect that German politics especially could result in Euro weakness if the problems persist, and Merkel’s position is questioned furthermore.

Yesterday evening an EU Summit in Austria began and it will last for 2-days. No major updates are expected as it’s an informal gathering, but I expect any allusions to Brexit to hold the potential to move EUR exchange rates.

Economic data releases to be aware of this week

Tomorrow morning is likely to be busy for EUR exchange rates as both Services and Manufacturing PMI figures will be released. These releases will provide us with an overview of the health of these industries, and as they cover the entire Eurozone they hold the potential to move the markets.

Prior to this release at 9.00am there will be releases for the same sectors but for France and Germany specifically, but I expect the Eurozone figures to be followed more closely by the markets as they carry more scope.

For more information on how future data releases could affect your currency requirement, 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.