This morning the latest Purchasing Managers Index data will be released for the Eurozone. The Services data is forecast to show a slight improvement from 54.2 to 55.0, whilst the Manufacturing data for August is expected to show a decrease from 55.1 to 54.6. All readings above 50 are considered to be positive so there is still optimism across the bloc that the business environment is positive. The Euro report below looks at the Eurozone as a whole, and the upcoming budget release due from Italy in the next few weeks. The table below shows the range of exchange rates for GBP EUR during the past month, and the difference in return you could have achieved when selling £200,000.00.
|Currency Pair||% Change||Difference on £200,000|
Along with the PMI data the latest ECB Monetary Policy Meeting Accounts will be released which provides an indication of the Central Banks thoughts on the economy.
At the moment the current crisis in Turkey coupled with Italy and Greece are providing investors with concern and it will be interesting to see if the European Central Bank have these countries on their radar.
The new Italian Government the Five Star Movement-League are expected to deliver their budget for 2019 in the next few weeks and it’s causing the European markets concern. The Italian deficit under EU rules is required to stay under 3% of GDP and early this week an Italian Official suggested that they may be prepared to cross that threshold.
Following the disaster in Genoa the government are planning to invest majorly into infrastructure projects which would increase their deficit at a rate considered unacceptable by the EU.
It’s no secret that the current Italian Government were voted in due to their Eurosceptic views, which after years of austerity run across Italy. The ruling party are planning to cut taxes whilst introducing a basic income for the poorest. Goldman Sachs have estimated that these policies alone would take the deficit to between 6-7%.
The Euro could come under pressure if the Italian Government look to defy the EU as many would worry that Italy could be heading back down the path they have come from. If you’re looking to sell Euros, it might be worth capitalising on the rates as a move back to the mid-teens may not be too far away.
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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The service was effortless to use and I was kept up to date all the way through the process with courtesy calls and advice from the same contact in the selling of my home abroad and returning the funds back to the UK. I would highly recommend this service to friends and colleagues in the future.
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