Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in the past 30 days affecting Euro rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
Germany has long been seen as the powerhouse of the Eurozone including politically and economically. However, recently with the collapse of the coalition talks last Sunday things are becoming rather unsettled.
This is not a good thing for Germany as well as Europe that it is taking such a long time to sort out. Issues including the EU budget as well as the Brexit talks are likely to be delayed or even put on hold until Germany is able to form its new government. Indeed, earlier this week German President Frank Walter Steinmeier has met with both the leaders of the Green Party and Free Democrats but there have been no signs of a compromise coming.
Chancellor Angela Merkel has pitched for another election rather than form a minority government but if this happens it could mean that Germany may not have a stable government until summer 2018.
With Merkel one of the key protagonists in the Brexit talks she may have to make way for French president Emmanuel Macron. Indeed, whilst there is the political instability in Germany this could in fact help the UK’s bargaining power.
In the short term I think we could see the single currency under pressure until we know what will happen with the political situation in Germany. Indeed, we are now at the best rate to buy Euros with Sterling in the last fortnight.
Although there is clearly a lot of political instability on the continent at the moment the economic data has been relatively strong in recent times. This morning brings with it the latest set of both Services and Manufacturing data for the Eurozone. Both have been performing very well during the course of the year so expect a reaction on GBPEUR exchange rates following the data release due at 09:00am.
Later today the ECB releases its latest Monetary Policy Meeting Accounts which will cover their recent decision to keep rates on hold and suggestions of what they may be considering with their current QE programme, so expect GBPEUR rates to move on the announcement due at 12:30pm today.
Thank you for reading my Euro currency report, if you have any questions about an upcoming Euro transfer or would like more information about any of the above you can get in touch on 01494 725 353 or email me here.
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