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 a month affecting Pound Sterling rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
It was an excellent close to the week for the Euro as political unity in Germany and positive vibes from the European Central bank pushed the single currency to 3 month highs against the Dollar and further cemented its hold over Sterling in the mid 1.12s.
Those hoping the Euro might become cheaper on the back of failed coalition talks in Germany were left disappointed as Chancellor Angela Merkel finally managed to secure an initial agreement with the Social Democrats to form yet another “grand coalition”. There are a few hurdles to cross before this is made official but I would be surprised if this isn’t completed after all of last week’s talk.
This show of unity from the two European powerhouses will only further harness investor appetite for the Euro. I wouldn’t be surprised if this further intensifies the underlying value the markets have attributed to the single currency, making a move back up to the 1.15 mark from the pound far less likely.
Unfortunately for Euro buyers the single currency is only showing signs of strengthening at the moment. German GDP grew by 2.2% during 2017 despite all the political uncertainty, rising at the fastest pace in over 7 years. German industrial production also rose by 3.4% for November. Investors will have been taking confidence from the consistent signs of optimism from the engine room of the EU (Germany) and of course the hawkish tone from the European central bank at their last meeting, with their monetary policy scheduled to be reived “early” in 2018.
I’m not convinced they will act as soon as the next meeting in July but a move before the March meeting must be on the cards. I can only see the Euro getting more expensive to buy short term, if you are looking to buy Euros it may pay to plan your move before European inflation data release in case it worsens your position on the back of increased spending during the festive period.
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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