This Euro report will address the factors that are likely to affect exchange rates in the next few weeks if you are buying abroad or making a currency transfer. The below table shows the difference in Euros you would have achieved when buying £200,000.00 during the past week.
|Currency Pair||% Change||Difference on £200,000|
Angela Merkel’s main competition, the Social Democrat Party spoke out for the first time on the subject of a potential coalition. According to the latest polls, The SDP was trailing Merkel’s party, the conservatives by 13 points at the weekend. Merkel has since said that it isn’t over until it’s over, with the majority of voters likely to make up their minds in the last few days before voting closes on the 24th September. Germans have enjoyed 12 years of prosperity under Angela Merkel, the biggest of her achievements reducing the number of German’s in unemployment and as a result I think this is a fairly comfortable win for the Conservatives. Nevertheless, I would still expect the Euro to come under pressure in the up and coming week, leading up to the 24th September.
Although the Euro may come under pressure short term, the stage is now set for Germany and France, two of the leading economies of the Eurozone, to bring some long lasting strength into the Eurozone following the far right losing their footings. If Angela Merkel’s party secure a win, then I really feel that a stronger Europe with two pro-business leaders could help investor confidence and therefore the strength of the Euro even further moving forward.
This week is set to be a quiet week following pushing the decision about the future of the asset purchasing scheme until next month at the earliest last week, leaving the Euro mainly at the mercy of other currencies and geopolitics. One data release worth noting for any clients with a Euro requirement will be latest industrial output report scheduled for release on Wednesday. Recent industrial output has been somewhat flat, a strong Euro partly to blame as a strong Euro means orders cost more from international buyers. A healthy increase is expected, therefore I wouldn’t be surprised for volatility if this number is below what is expected.
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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