The Euro weakened yesterday morning against the Pound following from a statement from the House of Lord’s EU Committee. The members agreed that the UK will need to set out a transitional agreement on leaving the Bloc, buying Britain more time to negotiate and easing pressures of a speedy exit. Employment change for the Eurozone was also released yesterday and showed a fall from 0.4% to 0.2%, which could be seen as a slowing economy, as if fewer people are in employment, consumer spending should slow too.
Sterling made gains against the Euro following these Euro negative releases, with rates moving from 1.19 to 1.197 and provided another great opportunity for clients purchasing Euros with Pounds.
These gains continued throughout the course of the afternoon as investors moved their funds into the US Dollar in anticipation for the US interest rate decision this evening. It is expected that the FED will raise rates by 0.25 or 0.5%, which would make for higher returns on investment.
The new Italian Prime Minister Paolo Gentiloni has spoken for the first time since his appointment, stating that he will assist the troubled Italian banks and that he requires more assistance from the EU in reducing the number of migrants entering the country. The world’s oldest bank, Monte dei Paschi di Siena, has made its last attempt at gathering the €5billion it requires to stay afloat through private bailouts. However, its chances of success are slim according to bankers, and the state may need to step in. If this does occur, I would expect that the Euro could suffer as a result, therefore any clients looking to sell their Euros may be wise to move sooner rather than later to avoid any potential losses.
The Italian banking crisis is just one of many problems that the Eurozone faces next year, clients looking to sell Euros may benefit from contacting their assigned currency expert. Call today on 01494 725 353 or email me here if you have any questions regarding todays Euro report. Alternatively, if you have not traded with us before you can sign up for free here.
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