With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. The below table shows the difference in Euros you would have achieved when buying £200,000.00 during the high and low points of the past month.
|Currency Pair||% Change||Difference on £200,000|
It seems each week sees another Eurozone country capturing headlines. After Spain and Germany, yesterday it was Ireland’s turn. Thankfully this issue has settled down after the resignation of Ireland’s Deputy Prime Minister Frances Fitzgerald, over a whistle blower scandal, however it has exacerbated concerns over how Brexit will fall on the Emerald Isle. The Euro has actually recovered many of the losses of last week where particularly uncertainty over another German election triggered widespread Euro selling. It now appears Merkel may be able to rescue the situation and a key meeting with the German President tomorrow could see further Euro strength if it is implied there will not be another election in the Spring.
The Euro has been able to stem losses as both the German and Irish situation don’t spiral wildly out of control. That could all change with the Catalan election next month however which is essentially a referendum of independence. Exiled self -proclaimed leader of the independence movement Carles Puigdemont is running and is now calling for Catalonia to leave the EU. This will be a key point for Euros rates ahead.
Key economic data for the Eurozone is released tomorrow with the latest Unemployment and Inflation data at 10 am. Amongst the unexpected outcomes from political developments these releases could be a bit more predictable in highlighting the strength of the Eurozone economy.
The Eurozone economy is growing at a faster pace than the United States and almost double that of the UK so the data should be supportive of the Euro. Of course any surprise fall in Unemployment or falling Inflation might see some shorter term opportunities to buy Euros. If you have a transfer to consider buying Euros with pounds we are doing much better following a surprise lift overnight, speak to your account manager to find out more.
GBPEUR could rise further based on the renewed confidence in a Brexit deal and uncertainty next month in Spain. I see a higher range possible up to around 1.16 should these developments unfold. However those buying Euros with Pounds taking on the inherent risk in gambling on such a scenario, should note that we could conceivably enter rates of 1.10 or lower should the EU summit break down and aforementioned European political concerns fade.
For any GBPEUR buyers and sellers rates are at a very important crossroads. Euro sellers are 5 cents away from the best rates to sell the Euro for pounds since 2009. Euro buyers are 1.5 cents away from the best rates to buy Euros in the last 3 months.
To make the most of these positions and get the latest news why not contact us and highlight your position. Let us be your eyes and ears in the market so that you can make an informed decision about the best way forward on your GBPEUR exchange.
Thank you for reading my Euro currency report, if you have any questions about an upcoming transfer I would be more than happy to discuss them – you can contact me with any queries on 01494 725 353 or email me here.
Jonathan Watson as ever, ensures a smooth, reliable and trustworthy transaction for the second time of service! Delightful to deal with – efficiency personified. Thank you Jonathan. Would recommend highly – 5Star.
Excellent initial guidance, and during the transaction regular communication and updates. Dealing with Jonathan Watson was a pleasure. Very reassuring.
Jonathan Watson provided very helpful advice throughout the process, as well as immediate responses to our inquiries. He and his team were patient and thoroughly professional, which helped us through some stressful moments following the sale of our property in France.