The Euro saw a boost against Sterling yesterday owing to the weak Pound, although that pairing doesn’t reflect the Euro’s value in general. The Euro report below looks into Sterling weakness against the Euro, and the latest on comments from Trump during a recent interview about the Chancellor of Germany Angela Merkel. The table below shows the difference in return you could have achieved when selling £200,000.00 during the high and low points of trading during the past month.
|Currency Pair||% Change||Difference on £200,000|
The longer-term sell-off of EURUSD saw the pair drop almost as low as the 1.15’s yesterday, which is hard to believe considering the pair hit 1.25 around 6-months ago.
I think it’s important that our clients and regular readers planning on converting Euros are aware of this price change, as watching the EUR/GBP pair exclusively may give Euro sellers a false sense of security.
Stagnant inflation levels and the European Central Banks plans to not amend interest rates for at least another 12-months has been behind the Euros weakness. I’m personally of the opinion that the GBP/EUR rate would be north of 1.25 (south of 0.80 regarding EURGBP) if Brexit wasn’t taking place, putting those changing Euros to Pounds at the current levels in an attractive position. Do feel free to get in touch with me directly if you wish to discuss this further.
US President, Donald Trump recently said in an interview that German Chancellor, Angela Merkel has lost her ‘superstar’ status owing to her lax immigration policies.
This is latest knock to the German leader who just last month fought to maintain her position after the German interior minister within her coalition made it clear there are issues within the new Government.
Whilst comments such as this, especially from Mr Trump are unlikely to impact the Euros value directly, there does appear to be a lot more pressure on her than she’s experienced at any other time during her term which begun back in 2000. The Euro would be likely to drop in value if her position comes under threat once again, especially as Germany is the key economy within the eurozone.
If you would like to be updated should Euro exchange rates changes suddenly, do register your interest with us. There are no major economic data releases this week out of Europe, so politics is likely to remain the main driver especially in regards to GBP to EUR rates. UK PM, May will be in Northern Ireland over the next two days discussing the border issues and offering reassurances to Northern Irish business. This could be another potential market mover.
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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