Euro forces Sterling to surrender February gains

Despite the political instability within the Eurozone, the Euro was able to capitalise on the UK’s poor economic data and political pressure to force Sterling back to the lows of 1.15. Over the course of last week, the pound slumped by almost 1.5% against the single currency offering our well-informed Euro selling clients an extra £2,600 on a €200,000 transfer. It highlights just how quickly the market can move and indeed the importance of staying in touch with your account manager here who can keep help you capitalise on any short-term spikes in the market.

Euro power houses hit stumbling block

Yesterday, newspaper Handlessblatt revealed Germany have blocked France and Italy’s proposal to fund the EU’s defence program with government bonds suggesting it goes against viable financing principles. Although the program is still being negotiated, divided opinions within the Eurozone on matters such as national defence could well add further ammunition for the rising populist parties in the key elections across Europe this year. A divided Eurozone could spell weakness for the single currency long term.

Juppé to step in as Fillon looses support

Yesterday, Francois Fillon’s French presidential campaign once again took a heavy blow as his key spokesman Thierry Solere resigned following fresh allegations into improper use of parliamentary funds from the former Prime Minister. In a statement, yesterday, head of the conservative party Fillon proclaimed his legitimacy however it seems his team are already withdrawing support and considering other options. One being Alain Juppé, who came second in the running to represent the conservative party. Surprisingly, a recent poll suggested that Juppé would win the first round of elections if he was handed the reigns. Given the conservative party was seen as the safer bet by investors prior to Fillon’s failings, we could see a bit of Euro stability should he stepdown.

GBP/EUR goal posts are set

As we get closer to Article 50 being triggered it is understandable that our clients are looking for decisive movement before making their trades in a bid to maximise their returns.

As such I think it is worth taking note of the recent political and economic outbreaks and how the market has moved as a a result. The pound went on a surge just 2 weeks ago, capping out at 1.19 against the Euro on the back of political unrest in France. Last week’s drive from the Euro certainly took its toll against Euro buyers however it did find quite strong resistance in the high 1.15’s. Thus, these would be my cues to action for anyone with a short-term Euro requirement as I think it would be ambitious to expect better rates in the weeks ahead.

I would urge Euro sellers to act sooner rather than later to capitalise on these current lows before the next political outbreak from Europe flips the market out of your favour. Call us on 01494 725 353 or email bts@currencies.co.uk if youre considering making the most of the recent highs.

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