Those of our clients holding onto Euros may see trade levels become more attractive next week if May’s Brexit plan is voted down as expected. I believe that the margin she loses by (if she loses) will determine the Pound's drop therefore making Euro to Pound transfers more attractive.

Currency Pair% Change in 1 monthDifference on £200,000
GBPUSD-2.45%$6259
Well publicised issues in France could put pressure on the Euro

Whilst seeking a weaker Pound in the hope of achieving more attractive EURGBP rates is a possibility, Euros sellers should be weary that the Euro has been coming under pressure recently for a number of reasons. This Euro weakness is easily identifiable, when we compare the Euro with other major currency pairs.

The Euro has lost over 2% against the US Dollar in just the past 3 months and it’s also lost almost 2.5% against the Aussie Dollar during the same timeframe.

Political issues have continued to drag the Euro lower which is why the EURUSD rate, which is the most traded currency pair in the world, is now trading at its lowest levels since the summer of July 2017.

The Italian Budget had been in the news for months as the new Italian coalition government struggles to gain permission from the EU for its domestic spending allowances. Also, within just the last few weeks a right wing party in Spain, known as Vox won a regional election for the first time in decades in Andalusia, after gaining more than double the amount of seats experts were expecting.

The most recent issues have perhaps been the most published of the bunch as what began as a protest in France regarding fuel tax hikes spread into the largest French riots since the late 1960s. The initial fuel tax hikes spread into general dissatisfaction with increasing living costs and signs of disapproval towards President Macron amongst other matters.

The protests have now been cancelled for 6 months owing to Macron backing down, but the damage has been done both physically to the streets of Paris and also to Macron's reputation.

GDP figures to take centre stage

The key release for the Euro today will be the GDP figures for the EU as a whole which will be released at 10.00am. The previous figure was released showing 0.2% growth quarter on quarter so I would expect to see the Euro weaken if the figure drops, especially into the negative zone.  

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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.