This Euro report will address the factors that could have an effect on exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved in Euros when purchasing £200,00.00 during the high and low points of the past month at the low and high levels during the past 30 days.

Currency Pair% ChangeDifference on £200,000
GBPEUR2.60% €5,780
After a selloff last week, the GBPEUR exchange rate has recovered by over 3.5 cents

Jean Claude Juncker and Donald Tusk to influence EURGBP exchange rates this week

Today President of the European Commission Jean Claude Juncker will meet Theresa May to continue Brexit negotiations. Two weeks ago President of the European council Donald Tusk told Theresa may that she needed to put an offer on the table by the 4th of December so the EU commission could decide whether enough progression had been made for Brexit negotiations to begin in the New Year. Last week Theresa May upped her divorce settlement bill offer to €50bn from €20bn and the reaction from the EU leaders was positive which gave the Pound a boost against the Euro. However this week those gains could be reversed when we receive developments about the Irish border.

Donald Tusk on Friday made it clear that they will support the Republic of Ireland over the UK as the Republic of Ireland will be remaining in EU and the UK will not.

Personally I expect that the UK will continue to state that the Irish border cannot be sorted until the trade negotiations have begun and the EU leaders will agree, which will pave the way for trade negotiations in the New Year. Therefore I’m expecting further losses for the Euro against the Pound.

Economic data to look out for this week

The Eurozone is set to release a host of economic data releases this week. To start the week Producer Price Index numbers are set to be released at 10am this morning. The numbers are set to show a slight decline which could lead to a small drop in the Euro's value. Tuesday Markit services numbers are to be released at 9am. The consensus is no change compared to last month, therefore I wouldn’t expect this release to have a major impact on Euro exchange rates. Thursday the latest quarterly and yearly Gross Domestic product numbers are released at 10am. No changes are expected however for clients exposed to Euro conversions keep a close eye on this release as it has the potential to have a considerable impact on exchange rates, if the figures fail to meet the expectation.

Thank you for reading my Euro currency report, if you have any questions about what will affect Euro exchange rates for future months I would be more than happy to discuss them – feel free to get in touch on 01494 725 353 or email me here.


Read more articles
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.