The Finance Minister of Germany, Wolfgang Schaeuble commented over the weekend that the Euro exchange rate is too low for Germany, increasing its export surplus and making it less competitive on a global scale. This comment has come just days after a top aid of US President Trump said the Euro was grossly undervalued and accused Germany of exploiting the weaker currency for trade purposes, an accusation German Chancellor, Angela Merkel has denied.
All this talk from key international figures regarding the strength of the Euro makes for interesting reading for those who intend on buying or selling the single currency in an upcoming currency exchange. Due to the Euro being in such a spotlight I would suggest any clients with plans to exchange it would be wise to make their currency broker here at FCD aware.
As it stands there is no measure for the fair value of the Euro across the 19-member bloc that use it. But many economists believe that German could cope easily with a stronger Euro considering it hit a 14 year low against the Dollar last month.
As the strength of the Euro across its range of economies becomes a sticking point, politics are also becoming an area of concern for many within the area. Marine Le Pen’s leadership bid has her in the news often and she appears to be a stronger candidate than French economists had hoped for. She has announced plans to remove France from the EU and stop using the Euro.
Whether her popularity impacts Euro exchange rates remains to be seen, and with the situation in the Netherlands very similar due to the emergence of Gert Wilders we could see headwinds for the Euro in future. Unlikely wins for either would spell trouble for the Eurozone in my opinion.
Towards the end of this week the Presidents and Prime Ministers of the Eurozone will gather to discuss the current issues affecting the union. Expect any key updates to have the potential to move Euro exchange rates.
Elections in Europe are due to begin next month and clients may wish to look to protect themselves from further political shocks. Call our trading floor number on 01494 725 353 or email me here.
My experience with Foreign Currency Direct has been excellent, and my account Manager Joseph Wright has been First Class. He has provided me with all the information that I needed, in a very clear way, that made it easy to understand.
Successful transfer to France. I have used Foreign Currency Direct several times. Nothing is too much trouble to explain, and when it comes to the actual transfer, it takes place on time without fuss. Never had a problem. Thank you Joseph!
Very efficient and responsive. We had great service from Joe Wright who helped us (patiently and with humour) through our currency purchase and was then able to guide us through the process of sending money to France for our property purchase.
Joseph treated us very professionally as well as friendly, and advised and went beyond his duty. Would recommend and use him again.