This Euro report will examine the factors that could affect exchange rates in the coming weeks 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 points during the past month.
|Currency Pair||% Change||Difference on £200,000|
There are multiple releases across the week with Mario Draghi the President of the European Central Bank set to speak this evening. This will then be followed by a flurry of data tomorrow with German inflation data and Eurozone production data both to be released. Then on Thursday the latest ECB Interest Rate decision will be accompanied with a statement from Draghi.
The Eurozone Interest Rate has remained at 0% for a considerable time however there is an expectation that the current asset purchasing scheme is set to be reduced down to €30bn a month.
The scheme at its highest point cost €80bn a month and the slow reduction in the volumes is seen as a positive. There isn’t expected to be a change until 2018 but Mario Draghi could provide his latest thoughts on where he sees the economy heading.
Draghi is notorious for strengthening the Euro and clients looking to sell the single currency could once again benefit from the speech. However, this week the European Council will be meeting at the same time, making a decision on Brexit.
All 27 nations of the European Union will meet and decide if the UK’s offer of €39bn is enough to let the talks progress. Considering on Friday when the Brexit talks appeared to cross the Irish border contention the rate jumped to 1.15, there could be another major boost for Sterling on Thursday and Friday.
Michel Barnier the chief negotiator for the EU believes the deal he has negotiated is good enough for EU leaders to accept, however it does involve all the members agreeing with the offer. Should the deal be accepted talks are expected to move onto trade providing certainty for UK and EU businesses.
In my opinion the rate could rise above the 1.15 level which suggests clients looking to sell Euros might be inclined to do so before Thursday. Make sure you’re in contact with your broker to discuss the options available to you. 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 7258 353 or email me here.
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