Yesterday marked the end of an 11 day run of consecutive losses for GBP/EUR rates after a speech by Theresa May on her revised withdrawal bill. We are now in the run up to the hotly anticipated European elections which begin tomorrow and are likely to create further volatility for exchange rates.
|Currency Pair||% Change (Month)||Difference on £200,000|
It is possible that the pound is most likely to be significantly affected by the results of the election, mainly due to the impact that it could have on the UK’s future relationship with Europe, the next steps in the Brexit process and how the Conservative Party perform.
According to the polls, Nigel Farage’s Brexit party are the clear leaders to win in the EU elections, whilst Conservative Party support is dropping significantly. In recent years anti-EU politicians have been gaining ground in other nations and more are expected to get elected as Members of the European Parliament (MEPs) tomorrow.
There is a chance that the elections could cause significant exchange rate volatility, so keep in touch with your account manager for all the latest news and market updates.
First thing this morning there is a speech from Mario Draghi following a European Central Bank meeting and this should be keenly watched by anyone with a euro requirement in the near future. Historically, comments from Draghi tend to create swings in the euro’s value and could present opportunities to take advantage of. Data from the Eurozone last week was positive on the whole, with inflation showing a rise on Friday for April, so it will be interesting to see how Draghi and the markets react to this.
There have been concerns earlier this week however from some experts that the Eurozone is on the brink of a crisis, with Germany’s manufacturing sector in particular struggling amidst the ongoing global uncertainty and lack of confidence. German growth forecasts expect expansion of just 0.5% this year, down from initial estimates of 1.8% at the beginning of the year, and this doesn’t bode well for the bloc as a whole.
This could in turn have an impact on euro rates so any clients with a euro requirement should keep an eye on the raft of economic data due from Germany tomorrow.
Amazing Customer service. Great spot rates & reliable transfers
Excellent service and very efficient and easy process.
I have used Foreign Currency Direct for many years and always helpful, polite and good rates according to the market. Easy transactions and seamless service