This Euro report will examine the factors that could affect exchange rates in the coming months to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low for the year to date.
|Currency Pair||% Change||Difference on £200,000|
The race to reach an agreement for the Brexit transitional deal is heating up as the deadline approaches next month. In the meantime, the EU will be expecting an update from the UK regarding their plans and proposals for future trade relationships this Friday on the 9th of February.
In the early hours of this morning we were given an update after Downing Street announced that Britain will leave the customs union after Brexit, and this update comes ahead of a busy week of Brexit negotiations in London between EU chief negotiator Michel Barnier and the UK’s leading ministers.
How Brexit talks pan out is likely to determine the movement between GBP/EUR throughout February and March, and I predict that a successful breakthrough could push the pair through the 1.14/1.15 resistance it’s met for the past 8 to 9 months now.
The Pound hasn’t climbed against the Euro by as much as it has against other major currency pairs, so some positive news for the UK economy, especially in regards to Brexit could be the catalyst to push GBP/EUR higher.
The past weekend was the self-appointed deadline for German Chancellor Angela Merkel’s conservatives and the Social Democrats (SPD) to reach an agreement on their coalition government, four months after the initial election.
At the time of writing there have been agreements on the energy industry, but the pair are still to agree on healthcare. It remains to be seen whether this issue will continue to drag on and potentially soften the Euro due to political uncertainty.
Aside from the German coalition talks, those following the Euro's value should be aware that this morning may be the busiest in what’s a quiet week for economic data. Data releases covering the Services sector in Germany as well as the Eurozone as a whole will be released this morning around 9am which could offer direction for Euro exchange rates throughout today.
Strategists at ING group recently forecasted that the Euro to Pound rate will drop to new yearly lows in the first quarter of this year owing to positive sentiment surrounding the UK’s Brexit plans.
Feel free to get in touch with your broker if you’re planning a transfer involving the Euro, or wish to discuss any other data releases that could affect its value in future.
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 on 01494 725 353 or email me here.
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