This report will examine the factors that could affect exchange rates this week in order to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received in Euros when buying £200,000 at the high compared to the low yesterday.

Currency Pair% ChangeDifference on £200,000
It was recently agreed that Greece’s Northern neighbour would be named ‘North Macedonia’ as ‘Macedonia’ could only be used in reference to the Greek province with the same name, blocking Macedonia’s hopes of joining the European Union and Nato. This has left the Greek Prime Minister without a Parliamentary majority, and could signal the potential for a snap General Election. The confidence vote is expected to happen later this week, and if the Government loses, the next General Election which is expected in the Autumn, could be brought forward. So much political uncertainty does not bode well for the European economy nor the value of the euro, as it makes it a far less attractive option for investors to hold their funds in.

Could we see Euro weakness due to problematic collation talks?

Angela Merkel is due to meet Social Democrat Party (SPD) leader Martin Schulz for a second day of exploratory talks on Monday. This will be done in an attempt to end current political deadlock and secure another term as Chancellor. EU policy is set to be discussed and negotiations are not set to be straight forward.

The SPD would like a future Berlin government to be similar to French president, Emmanuel Macron’s and back the implementation of a Eurozone budget and finance minister. This is however controversial and could create problems.

If the coalition talks do prove to be problematic this could cause Euro weakness and it could be a small window of opportunity for Euro buyers.

The negotiations opened again yesterday more than three months after Merkel failed to form the so called Jamaica coalition between the CDU/CSU, the Free Democrats and the Green Party. It has been a long period of political uncertainty and there has been calls for Merkel to step down. Her position in her party has weakened considerably following their worst defeat since 1949.

If the talks fail, Merkel has only two options, either a minority government or new elections. She has ruled out the first option and has said she would run again for chancellor which would create an even longer term of uncertainty.

ECB Monetary Policy Meeting Accounts

The European Central Bank (ECB) Monetary Policy Meeting Accounts provides insight into the decisions made on monetary policy, to make the information accessible to the public and enable them to have a better understanding of what drives the decisions made. This overview includes information on developments in the financial and economic markets. When monetary policy is updated, it likely to move markets.

Thank you for reading my Euro currency report, if you have any questions about Euro exchange rates I would be more than happy to discuss them – you can contact me with any queries on 01494 725 353 or email me here.


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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.