This Euro report will examine the factors that could affect exchange rates this week in order to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low on Wednesday.

Currency Pair% ChangeDifference on £200,000
GBPEUR0.6353%€1420
QE to finish at the end of the year

Positive Eurozone data continues

The majority of Eurozone data has been positive of late and the trend continued with yesterday’s Industrial Production data. There was a significant increase which bodes well for the Euro. This usually would have a bigger impact on GBP/EUR, but Brexit negotiations are currently the key driver for the pair. If these positive data releases continue this could influence the European Central Bank (ECB) to change monetary policy. Things are looking healthy for the Euro as we are about to enter 2018.

It is still worth keeping an eye on potential problems for the Euro. Catalonian independence does have potential to cause the Euro to slide if a separation from main land Spain does become more apparent.

Greek debt although now slightly more manageable is not something that should be swept under the carpet. Although, I think a break away from the EU and a debt write off is unlikely. After all the International Monetary Funds (IMF) want their money back.

Eurozone Services PMI and ECB Interest Rate Decision due today

Eurozone Services Purchase Manager Index (PMI) is due out this morning. This gives an idea of the health of the services sector in this region and makes up a substantial amount of Eurozone GDP. There is expected to be a small contraction, but I am going to go against the grain due to recent positive data and predict there could be a small gain which could prove beneficial for the Euro.

The European Central Bank (ECB) interest rate decision takes place later today. I do not expect any change, but keep an eye on the monetary policy statement and press conference following the decision as if there is a hint to change in monetary policy this could influence the markets.

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.

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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.