Over the weekend the President of France, Francois Hollande reiterated his stance regarding the UK’s planned separation from the EU starting in March of next year. Sterling sellers will have hoped for good news over the weekend and a boost to the Pounds value but that’s unlikely to happen whilst Mr Hollande remains outspoken and unwilling to budge on EU rules. At a conference on Europe in Paris over the weekend he stated that the Brexit should not put the EU’s free movement of people at risk, and this isn’t the first time he’s outlined this opinion.
Hollande was the second prominent European figure to make these types of comments within a week, as President of the European Council; Donald Tusk had his turn last week. Personally, I expect the leaders of the EU’s most prominent countries to continue to hold these opinions, as should they allow the UK exemptions I would expect it to result in a number of other EU nations requesting the same, and could be the beginning of the EU’s dissolution.
With that being said should the UK receive any kind of leeway, I expect that to be Euro negative news so Euro sellers hoping to at least hold onto the current almost 5 year highs should be aware of talk along these lines, and the potential effects on the EUR/GBP pair.
Yesterday Eurozone Inflation figures came out exactly in line with expectations and markets remained completely unchanged. Had the figures of swayed from their expectations we would have likely seen some big moves which is why it’s always important to stay in touch with your broker.
This Thursday will be when the European Central Banks Interest Rate Decision will be made. The expectation is for rates to remain unchanged at 0% but a rate change will likely create movement within GBP/EUR rates. Feel free to get in contact before then if you wish to convert currency outside of these price sensitive times this week.
Thank you for reading my Euro report this morning, if you would like more information on how future events could impact your currency transfer requirements, call our trading floor on 01494 725 353 to speak with one of our brokers.
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Successful transfer to France. I have used Foreign Currency Direct several times. Nothing is too much trouble to explain, and when it comes to the actual transfer, it takes place on time without fuss. Never had a problem. Thank you Joseph!
Very efficient and responsive. We had great service from Joe Wright who helped us (patiently and with humour) through our currency purchase and was then able to guide us through the process of sending money to France for our property purchase.
Joseph treated us very professionally as well as friendly, and advised and went beyond his duty. Would recommend and use him again.