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 just a month affecting Euro rates during the high and low points for the past 3 months when buying £200,000:

Currency Pair% ChangeDifference on £200,000
GBP/EUR8.2%€18,200
Is this the end of the strong run for the Euro?

Euro strength begins to weigh exports

The Euro has become a victim of its own success recently, as key trade data from the Eurozone’s powerhouse Germany came out 11% lower than expected. Analysts have put this down to the continued rise of the value of the euro outpricing key European exporters products and services on the international market.

According to Morgan Stanley, every 10% rise from the Euro slashes 8 percent from European profits from exports. Since the start of the year, the Euro has gained nearly 12% against the Dollar so it’s no surprise leading CEO’s in the single market are loosening their collars ever so slightly.

Euro holders be warned: The Euro’s recent strength stems from consistently positive economic data and the European Central Bank’s subsequent hints to tapering their economic stimulus. This pressure from exporters may well force the ECB to reconsider changing their monetary policy near term, in a bid to cap any further gains from the Euro. I wouldn’t be surprised to see Euro weakness as a result.

Those looking to sell Euros to buy sterling have already gained over 8% since April. That’s more than £13,000 added to your returns on a €200,000 transfer. It may pay to protect these gains before the euro losses momentum.

Rising stars Spain and Netherlands: Long term strength for the Single currency

Looking long term, the political and economic stability in the Eurozone looks promising and investors have been flocking to the single currency as a result. The recent growth levels released from Spain and the Netherlands have made the landscape look even better.

Since the Euro Crisis, Germany and France have been considered the main drivers that pulled the block away from recession, but it looks like that dependency is starting to be shared with Spain and the Netherlands expected to exceed its growth forecasts for 2017 according to a recent Reuters poll, with both already averaging at an impressive 3.1%. There is a raft inflation and trade data coming out of Europe’s second tier countries including Italy and Portugal. If these come out better than expected, then I expect the markets to favour the euro in similar fashion.

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 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.