Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just 1 week affecting Euro rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
The latest European Central Bank minutes released at the end of last week have raised some concern with the Euros appreciation, changing their tune from a previous Draghi statement. The President of the ECB had previously mentioned there wasn’t much to be worried about which green lighted the buying of the Euro for many investors however the strength does come with consequences. The costs of goods become more expensive for buyers who don’t have Euros, which could see a slowdown in the Eurozone’s strength over the next few months. Furthermore, as the Central Bank have now publicly raised their concerns about the strength they could start to actively talk the currency down. Analysts have suggested that the Bond Buying program in the Eurozone could stop as soon as September, however overly positive news for the EU could drive the rate even closer to parity.
Mario Draghi will be speaking on Friday this week at the Jackson Hole Symposium which is an economic conference and he could provide further clarity on the ECB’s position.
There is a multitude of releases across the Eurozone this week for both individual countries and the whole EU. The key data will be the Purchasing Managers Index on Wednesday which in the last few months has been at an all-time high. Both the Services and Manufacturing data are expected to remain at that level, which could provide an even further boost for the Euro.
If the rate does drop into the 1.08’s this week it will be the first time since September 2009, which would present a great window of opportunity to sell Euros to Sterling. Whilst there could be further movement in your favour, currency markets can often change at an instance so it may be worth capitalising on the major movement in your favour. Since June last year transferring €200,000 back to Sterling sees a gain of over £30,000.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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