Lewis Edmonds
Affiliate Relationship Manager
Markets await European Central Bank Interest Rate decision
Today we will see the latest interest rate decision and guidelines on future monetary policy from the European Central Bank.
This Euro report looks at the factors that could effect the rate of exchange for your currency transfers in the short term. The table below shows the difference in Euros you would have achieved when buying £200,000 at the high and low points over the last week.
| Currency Pair | % Change | Difference on £200,000 |
|---|---|---|
| GBP/EUR | 1.73% | €3900 |
Investors cautious over ECB decision
The markets are eagerly awaiting the latest interest rate decision and guidelines regarding future monetary policy from the European Central Bank (ECB) today.
I think that the markets have largely priced in the outcome for today’s meeting already with reports indicating that there will be no tweaking to monetary policy just yet. The Euro had benefitted of late following rumours that they will likely start to unwind their €60BN Quantitative Easing (QE) programme. However, reports are indicating that the ECB won’t start to reduce their asset purchasing programme until early 2018 with the official announcement expected in Septembers meeting.
Why won’t they raise interest rates?
Although Inflation in the Eurozone has been steadily increasing, it is still well below the target of 2% set by the ECB and until inflation nears this figure, I don’t expect Mario Draghi to change his dovish tone.
Recent data releases from the bloc have done little to help a case for raising interest rates or tapering monetary policy just yet. The ECB’s Bank Lending Survey indicated that in short the ECB are still desperately trying for consumers and businesses to borrow by easing credit standards, coupled with falling business sentiment across the Eurozone. One real concern is the slowdown in business sentiment from the driving force of the Eurozone.
My personal opinion is that the Euro will lose value today. I personally think that Draghi will carry his dovish tone and won’t give much for investors to chew on just yet. It is worth nothing that Mario Draghi has confirmed his attendance at the Jackson Hole Symposium in September where it is expected he will give some indication then.
For more information on how future data releases could affect your Euro requirement, call our trading floor on 01494 725 353 or email me here.
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D. Gilchrist
UK
Based upon my experience over 10 years I would commend their first class service to anyone. Always helpful and excellent rates. Why bother with high street banks whose rates are never comparable, but most of all have lost the personal service which FCD has in spade loads!
C. Newman
Excellent service. 100% reliable and much better value than the FX services offered by banks.
A. Arthur
UK
Foreign Currency Direct offer a very fast and efficient service with good rates, they always beat my bank.
P. Johnson
France
I’ve used FCD for the last 5 years to finance our holiday cottage in France. The staff are always polite and helpful, and make the transfer process very straightforward and easy. Thoroughly recommended.