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% ChangeDifference on £200,000
GBP/EUR2.8%€6,200
Euro rates following Italian Coalition talks

Positive steps from Greece help boost the Euro

The Euro has gone from strength to strength in recent months against Sterling, and there is no sign of this slowing down at present, with Greece now starting to show green-shoots of recovery. Since 2010 the Greek government has been reliant on EU bailouts, but this week it was announced that they will return to the financial markets with the first sale of their government bonds since 2014.

Although only a small step for Greece, the significance is that this could mean that Greece will be closer to being able to finance themselves in the years to come and not be so dependent on bailouts from the EU, which will only strengthen the Eurozone and could therefore benefit the single currency too.

With confidence in Greece now growing, we have also now seen credit rating agency Standard and Poor’s recently upgrade their outlook on Greece’s credit rating to ‘positive’ and if there is a flow of money in to Greece, we may start to see some of their capital controls released.

It’s not just Greece boosting the Euro however, with Germany and France also giving the single currency a shot in the arm yesterday morning following extremely strong business confidence readings. As a result we are currently witnessing near 8-month highs for the Euro against Sterling and a fantastic opportunity to take advantage of for anyone selling Euros to buy Pounds.

How will the German elections affect the single currency?

Although the Euro is performing well at the moment there could be some uncertainty and volatility on the horizon for the single currency as the German election approaches which is scheduled for the end of September. As we have seen with the UK general election this year, these big political events have the potential to create large swings in a currency’s value, so anyone with a Euro requirement would be wise to keep track of events in Germany as they unfold.

Angela Merkel is currently leading the polls, and the momentum of the far right movement seems to have died down a little following Marine Le Pen’s loss in France earlier this year, but I believe we could see the Euro lose ground as the election day approaches, so anyone buying Euros should be prepared to act if an opportunity presents itself.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me 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.