2016 has been dominated by talk of the Brexit. The long run up to it, the chaos of its realization, and evolving landscape which has followed. Next year this will not cease, but buying Euro rates will have further talking points to govern rates of exchange.
Essentially there are turning points of their own which need to be addressed for anyone with a medium to long-term Euro buying plan – as the short-term view is largely covered in the Sterling section of this report.
Three big elections will watched closely by financial markets – The Netherlands, France and Germany, which represent 38% of the Eurozone economy, and all of which have pro-EU leaders threatened to be attacked by nationalist and populist anti-EU parties. The two key elections of France and Germany will be held on May 7th and 22nd October in Germany respectively.
The latest Italian Referendum which paved the way for the resurgence of rightist parties against the EU caused the Euro to lose around 1.5 cents at its peak on Monday December 5th. So whilst not holding the same immediate ramifications of the Brexit vote, the currency markets certainly carry much of the initial weight of global reaction to such news. Furthermore, like the Brexit markets will move ahead of time and react to polls in the run up to voting.
Even then there are also wildcards, such as Greece’s ability to pay back its recent bailout, and Spain’s Catalonian Independence vote which could cause turmoil in another Eurozone economy carrying 7% of its GDP.
With so much of the value of the Euro tied up in politics for the foreseeable future, it is imperative that Euro buyers planning a purchase should detail this to their account manager. This ensures you will remain a well-informed purchaser and maximise your potential to secure your currency at any peaks which may emerge, and avoid leaving yourself exposed to what is sure to be another eventful year in the currency markets. Our trading floor are open today on 01494 725 353 to talk through any of your requirements.
Would not hesitate to use again, Joshua from FCD looked after us very well and we were able to get a good rate of exchange, the whole process was very quick and painless.
This was a faultless service from start to finish. Our contact, Joshua, could not have been more professional and efficient. He guided us excellently through all the stages of transferring money to the UK. Joshua even managed to get us the best exchange rate available at the time, and he did this with a pleasant manner and exceptional politeness.