Even though most media outlets have been focusing on Brexit and the impact on the Pound. The European economy is equally not performing as well as previously expected.

Currency Pair% Change in 1 monthDifference on £200,000
GBPEUR2.7%€6,000
Buying euros becomes less costly

Labour costs across the block rose 2.2% in Q2 which is the fastest pace in almost six years. The job vacancy rate across Europe, which is the share of available jobs that are unfilled, climbed to 2.1% in Q2 which is the highest level on record. This negative tone for the European economy could well be continued later today when further economic data is released. At 9:00 today we have Consumer confidence, Service Sentiment, Industrial Confidence and Private loan numbers. Most are expected to show a further contraction and I would not be surprised if we see the Euro lose value in early trading today. Tomorrow however we have Consumer Price Index for the Eurozone which is expected to show an expansion probably reversing the losses for the Euro. As a result, Euro sellers may want to either move before the release today or wait until Friday, whereas Euro buyers may want to move this afternoon in an effort to try and achieve the most for your money.

Labour costs across the block rose 2.2% in Q2 which is the fastest pace in almost six years. The job vacancy rate across Europe, which is the share of available jobs that are unfilled, climbed to 2.1% in Q2 which is the highest level on record.  This negative tone for the European economy could well be continued later today when further economic data is released. At 9:00 today we have Consumer confidence, Service Sentiment, Industrial Confidence and Private loan numbers. Most are expected to show a further contraction and I would not be surprised if we see the Euro lose value in early trading today.

Tomorrow however we have Consumer Price Index for the Eurozone which is expected to show an expansion probably reversing the losses for the Euro.

As a result, Euro sellers may want to either move before the release today or wait until Friday, whereas Euro buyers may want to move this afternoon in an effort to try and achieve the most for your money.

Forecast for the Euro longer term

Longer term a majority of the Euro value is driven by central bank policy and global political and economic events. As the EURUSD pairing is the most traded pair globally, what happens in the US can impact the demand for the Euro and its value as a result so it would be wise to watch President Trumps comments at the United Nations and the talk on trade wars. Within Europe a lot rides on the European Central Banks forecasts for growth and when their QE program concludes. The market now expected this to conclude at the end of the year but any change to this could well have a dramatic impact on the Euros value.

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