This Euro report will examine the factors that could affect exchange rates in the short term to help you stay informed if you need to make a currency transfer. The table below shows the difference in Euros you would have received when buying £200,000 at the high compared to the low yesterday.

Currency Pair% ChangeDifference on £200,000
GBP/EUR0.2293%€500
Mario Draghi Speech Today

Could Mario Draghi give away any indication as to future monetary policy at Jackson Hole?

Mario Draghi, the head of the European Central Bank (ECB) due to speak at the Jackson Hole Symposium on Friday. The Jackson Hole Symposium is an annual symposium held in Wyoming and is a forum for central bankers, policy experts & academics to come together and discuss monetary conditions and policies.

The question on everyone's lips is whether Draghi will address the situation with Quantitative Easing (QE). QE is essentially pumping money into an economy to stimulate growth.

There is a lot of pressure on Draghi to explain how the ECB will exit it’s very large stimulus package, the Jackson Hole Symposium could be the platform to convince the markets the ECB are now in a position to taper QE. Draghi could be reluctant to do so for fear of further Euro strength which could jeopardise euro exports. Current monthly increments are set at €60bn a month, if there are any hints of tapering expect the Euro to strengthen.

I think it would be too soon for Draghi to start tapering, in my opinion there needs to be more sustained growth to warrant a cut in QE. If you are sitting on Euros it is a tough decision when to move, there is the probability the market could move further in your favour, but when GBP/EUR sits at some of the most attractive levels since 2009 I can appreciate the temptation to trade.

Manufacturing & Services PMI could change Euro value

Manufacturing and Services Purchase Managers Index (PMI) is a measure of business conditions in each sector, these are due to be released later today. There is expected to be little movement on services and a small drop in manufacturing data. If the data comes in away from expectations there is the possibility of volatility.

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.