This Euro report will examine the factors that could affect exchange rates in the coming weeks to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low for the past 20 days.

Currency Pair% ChangeDifference on £200,000
GBPEUR2.4%€5,600
Euro losses continue as inflation levels surprise the markets

Euro’s losses continue as inflation levels surprise the markets

The Euro has continued to fall out of favour with the markets of late as yesterday’s surprisingly disappointing inflation levels sapped investor appetite. The Eurozone’s Consumer Price Index (CPI) came out under the expected 1.5%, just about hitting 1.4%. It further justifies the European Central Bank’s decision to continue injecting money into the economy in a bid to promote growth. Unfortunately for Euro holders, it also makes the Euro a far less attractive prospect, as the returns on investment will be capped for the foreseeable future. The release prompted a 0.6% rise from the pound making a €200,000 purchase over £1,000 cheaper.

If you are looking to buy Euros with Pounds, it is worth noting that despite this, the Eurozone has continued to outperform forecasts, with yesterday’s GDP figures coming out higher than expected at 0.5%. I believe the markets have set an underlying value to the Euro as a result of this.

The pound has only hit the low 1.14’s twice since July before heavily treating back down towards 1.10. Given we are currently floating around the upper tier of that bracket, it may pay to capitalise on yesterday’s release to maximise your returns.

Sending funds back to the UK? Catalan Counter attack could leave you short changed

Aside from economic data, the market’s main concern for the prospects of the Euro remains Spain's ability to contain their Catalonian Crisis.

The to-be prosecuted Ex Catalonian leader Carles Puigedemont isn’t making the process any easier, having travelled to Belgium to discuss with lawmakers in a bid to protect his positions and indeed Catalan’s political voice.

Puigdemont insisted he would return to Spain straight away to respect his responsibilities, as long as the government respect theirs.

Talks of creating a Catalonian Cryptocurrency have already started to surfaces, to go along with an independent banking system. With contingency plans beginning to build, the prospect of a Catalonian counter attack remains ever present. It could well carry a heavy sting for Euro holders for the foreseeable future. If you are holding euros and want to take the risk out of your pending transfer, feel free to contact your account manager to review your options.

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 on 01494 725 353 or email me here.

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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.