Over the week, speculation built that the Brexit deal would be signed off over the weekend. The GBP EUR rate has been climbing as a result. It now sits over a cent higher than a week ago giving clients an additional €1,500 on a £150,000 transfer if timed well over the last 7 days.
|Currency Pair||% Change in 1 month||Difference on £200,000|
In the final minutes of the Brexit vote last weekend, Spain threatened to veto the meeting over Gibraltar and its right to the ‘rock’. Theresa May ended up backing down to Madrid on the day before the meeting so the meeting could take place. On the eve of the special Brexit summit, the British Government conceded that Gibraltar would not necessarily be covered by future trade deal with the EU. This development really means that the Spanish can now veto any future deal concerning trade or security over Gibraltar, which by doing so opens the door for more conversations and the sovereignty of the territory.
This had little impact on the value of the GBP EUR rate due to the small economic input it provides to the overall GDP of the UK, however it is a large political change in tone.
Generally, European Economic health has continued to look sluggish and indeed weaken the euro's value. Last week data showed a contraction in the service sector for both France and Germany, plus overall Manufacturing data also showed no growth. Business growth in the euro zone slowed down more drastically than expected, and Germany, widely seen as the power house of the Eurozone, also reported private-sector growth slowing to its lowest level in nearly 4 years.
Add this to the ongoing dispute between Brussels and Italy around next year's budget, and we could see a challenging time for the single currency moving forward.
Economic data continues this week with further key indicators which could well have an impact on the value of the euro. Consumer Confidence and Business Climate data is due on Thursday and Unemployment and Consumer Price Index data on Friday. Both are expected to raise more alarm bells for the European Central Bank and their policies going forward into 2019.
As a result, I personally see the euro remaining under pressure and probably ending the week less valuable than where it starts.
Yet again, a stress free, professional and secure service from FCD. I wanted the facility of moving funds easily from the UK to France on a regular basis and that’s exactly what I get from Steve Eakins and his team.
Always easily reached and offer excellent and responsive service. Even though I have no knowledge in this area I felt supported and well assisted.
Always a top service. Steve Eakins is always on the ball and keen to help.
The service was conducted very easily and quickly and Steve Eakins was a true professional.