This Euro currency update examines factors that could affect EUR exchange rates this week.
Mario Draghi today will provide the introductory speech for the first annual European Systemic Risk Board conference in Frankfurt. The President of the European Central Bank (ECB) has a significant influence over the GBP/EUR exchange rate and this tends to come in the form of strength for the Euro. Whilst it’s unlikely that Mr Draghi will deliver any surprises in the conferences opening speech, the currency markets are very volatile at the moment and respond to every minor piece of information.
Europe’s business leaders have hit back at recent claims from Barclays CEO and Chancellor of the Exchequer Philip Hammond, that the EU would shoot itself in the foot if it undermined London’s status as a global financial hub. Unilever boss Paul Polman suggested he was not worried at all and that financial markets are already looking to move to the likes of Frankfurt. Whilst we await the negotiations for the Brexit to commence there is likely to be more differences in opinion coming to light.
Tomorrow Markit will provide the latest Purchasing Managers Index for September. There is expected to be no change from the previous month for Services. However the Manufacturing data is expected to show a small decline, significantly though both readings are expected to be above 50 which show’s confidence amongst decision makers.
The Euro has strengthened recently and should there be more positive data this recent run could continue. However in the medium term I believe the GBP/EUR rate will start to increase as there is more political uncertainty appearing in the Eurozone. Whilst the markets continue to be very unpredictable, contacting your broker could help you achieve a better rate of exchange.
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 at firstname.lastname@example.org.
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