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||% Change||Difference on £200,000|
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.
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.
First class foreign currency provider, great rates and outstanding customer service.
Great service very professional but with a personal touch. Everything went smoothly with no fuss. Would highly recommend.
It was really refreshing to go through a process that had absolutely no hiccups at all, the service that we were offered exceeded our expectations. We would unreservedly recommend the company to anyone seeking to exchange currency.
Very efficient service. I’ve never used a service like this before & was purchasing a house in France. It was all explained very well & I was kept informed all along the process. Putting a deposit down to pre-book the rate also saved us a fortune.