This Euro exchange rate update discusses the events that could affect GBP exchange rates this week. The table here shows the shift in GBP/EUR rates in the last 30 days:
|Currency Pair||% Change||Difference on £200,000|
Yesterday morning’s trading saw the Euro enjoy a brief spike of strength against the Pound after Eurozone GDP figures for the third quarter of this year showed a solid improvement. As a result of these figures forecasters are now predicting that 2017 is going to be the Eurozone economy’s best year of growth in a decade, and goes to highlight a stark contrast to the UK, with expectations from the OBR (Office for Budget Responsibility) last month that the UK economy is going to grow at a slower pace this year and in 2018 compared with previous estimates.
Despite this we did actually see the Pound gain against the single currency yesterday and continue this run this morning to a 6-month high after reports emerged that the EU are happy to progress Brexit talks from the Irish border to future UK-EU trade agreements.
Anyone with a Euro requirement in the short-term should keep an eye on next Wednesday’s industrial production and employment data which will be keenly watched, especially ahead of the ECB’s interest rate decision on Thursday. I think it is unlikely that we will see any change in monetary policy at next week’s decision, but the head of Deutsche Bank, John Cryan, announced yesterday that he believes that interest rates should rise in the near future as he fears that there are ‘bubbles emerging’ in certain areas of the market due to the flow of cheap money. As such I believe that Mario Draghi’s comments after the decision should closely watched as if he echoes Cryan’s tone, especially since the economy is performing so well of late, we could see some spikes in the Euro’s value.
In my view, with this interest rate decision next week and the EU summit coming to a head on Thursday, clients who are buying or selling Euros would be sensible to speak with their account manager here to put a plan in place that could protect you from any adverse market movement. We have a number of contract options that can help take some of the uncertainty out of the market, so speak with your account manager here to find out how these could work for you.
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