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 when buying £200,000 during the high and low points of the past 30 days:
|Currency Pair||% Change||Difference on £200,000|
I believe Brexit uncertainty is weighing down on the Pound, President of the ECB Mario Draghi is painting a positive picture in regards to the state of the European economy, and the demise of the US Dollar is causing currency flows out of the US Dollar and into the Euro which in turn is pushing GBPEUR exchange rates lower.
I still believe these are the three main reasons why GBPEUR continues to struggle on, yet with Donald Trump’s latest saga and the potential to shut down the Government in the upcoming weeks, I expect EURUSD to continue to rise towards 1.20, which in turn could push GBPEUR exchange rates closer to parity. For short term euro buyers biting the bullet and trading sooner rather than later may be wise!
Tomorrow at the Jackson Hole Symposium President of the European Central Bank Mario Draghi will give his overview on the outlook of the Global economy and that of the Europeans. It was three years ago at the Jackson Hole meeting that Mr Draghi announced and outlined that the ECB would be starting a Quantitative Easing program in order to kick-start the economy. Throughout his press conference tomorrow economists will watch closely to see if the President hints towards any changes to the bond buying program which could cause major volatility.
Personally I believe the President will stay on topic and speak about the Global economy and stay well away from future monetary policy decisions. My reasoning is that back in June Mr Draghi gave indication that change could occur to monetary policy and the euro went from strength to strength. A month later the ECB governing council outlined their concern that if the euro continues to strengthen it would have a negative impact on inflation, which could therefore lead to the program running longer than expected.
Consequently I expect Mr Draghi to keep his cards close to his chest and wait until the 7th September, when the Governing council meets and many are predicting he will make an announcement. However it is important to note when Mr Draghi addressed the public yesterday, his general tone caused the euro to continue to strengthen against the pound therefore I wouldn’t be surprised to see this trend continue making euros more expensive to buy for clients holding onto sterling.
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.
Dayle Littlejohn was very helpful and professional. I have already recommended your company to friends.
Very friendly professional and efficient service. Dayle Littlejohn is outstanding.
Excellent experience every time. I always feel as though it is a personal service with the staff getting to know me as a person rather than just a customer. Special thanks to Dayle Littlejohn.