This morning the latest Consumer Price Index (CPI) data was released showing the April year on year figure rose from 1.4% to 1.7%. This was above the expectation but did little to impact the GBP/EUR exchange rate. The Eurozone has been through a rough patch in the last six months and the markets could be looking for further positive data before making decisions. The European Central Bank (ECB) have returned to injecting stimulus into the market, so we may start to see an end to the poor data, however markets may become more sceptical as there is something of a false economy.

Currency Pair% Change (Month)Difference on £200,000
GBPEUR0.89%€2,128
Boris meeting EU leaders

EU election chaos

A survey commissioned by the European Parliament has investigated the projections for the latest elections and significant changes look like they may be on the cards. The Grand Coalition made up of the European People’s Party and the Social & Democrat Party have had a majority in the Parliament for nearly four decades and forecast suggest this could be coming to an end.

The main concern for the EU is who they will be replaced by and now it looks like Eurosceptic parties could be set to make significant gains. The current path for the EU could be altered and it will be interesting to see how the markets react to this change. The Eurosceptic groups could become very strong as with 33% of the vote they can start to block legislation forcing a change to the current path.

It’s clear that the rise of the right across European nations will be reflected in these elections, however to what extent may be key. The euro could well struggle which is already the case against the US dollar and arguably should there be some movement on Brexit the GBP/EUR level may start to climb also.

If you’re looking to purchase euros then setting a rate alert with us could make sure we’re informing you when your target is reached, making sure you buy at the level you desire.

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