Foreign Currency Direct Foreign Currency Direct
Login Register

Matteo Salvini, leader of the League party has called for a snap election creating political uncertainty in Italy that does not bode well for the euro.

The League party is part of a coalition with the anti-establishment Five Star movement and Salvini has stated the coalition is unworkable.

The two parties have clashed over several issues, but the current talks over a rail link between Turin and Lyon has resulted in fierce conflict between the two parties. Five Star strongly oppose the rail link due to the cost and environmental impact.

Italy currently has extremely high levels of debt, currently higher than GDP. Brussels has threatened to impose a €3bn fine if there is not a real attempt by the Italian government to show a solid plan of repayment. This could further strain the relationship between Rome and Brussels and has the clout to influence euro value.

Despite the situation with the euro it seems to be still outweighed by the UK’s problems surrounding Brexit. The euro is close to a two year low against the US dollar, yet still continues to make gains against the pound.

UK GDP Data Lower Than Initial Forecasts

Eurozone GDP

Eurozone GDP is due out tomorrow and could cause volatility on the market.  There is expected to be little movement on quarter on quarter data, it is set to land the same as the last quarter at 1.1%.

German GDP data is also due out today and it may be the case there is a fall. It is predicted to drop to – 0.1% from 0.4%. As the engine room of the bloc this may have the power to weaken the euro.

Read our monthly currency forecast

Download here

News

Sterling Retreats From 8-Month Highs Against the Euro

Sterling Retreats From 8-Month Highs Against the Euro

The pound to euro exchange rate is at 1.1259 at the time of writing, falling from 1.1321 highs seen on Friday.

By Tom Holian
Sterling’s Steady Rise Continues

Sterling’s Steady Rise Continues

Since reports of progress between the UK and Brussels at the end of last year, we’ve seen a steady increase in GBP value.

By Richard Nugent
UK Vaccine Rollout Supporting Sterling Rates

UK Vaccine Rollout Supporting Sterling Rates

GBP has enjoyed a steady surge in strength thanks to increased optimism regarding the UK’s covid vaccine rollout.

By Steve Eakins
Read more articles

 

A. Hawgood

UK

From start to finish with all contacts you feel like a VIP client even if you are exchanging small amount of currency. Always polite cheerful and give you straight talking advice before making the decision. Daniel Johnson and the team are a pleasure to deal with.

Read our testimonials

C. Lafferty

UK

Daniel Johnson was very helpful throughout the transaction. It was quick and hassle free. I would definitely use this method again.

Read our testimonials

D. Scamans

Excellent… can’t fault it… Thankyou Daniel.

Read our testimonials

I. Armstrong

UK

Daniel Johnson explained clearly and in an easy to understand way what the process would entail before I made the transaction to pay the deposit on an overseas property. The transaction was carried out in an efficient and timely manner and I felt no pressure at any time.

Read our testimonials
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.