This Euro update looks at the factors that could effect the rate of exchange for your currency transfers in the short term. In the table below we have shown the difference in buying £200,000 at the high and low points of the past month

Currency Pair% ChangeDifference on £200,000
GBP/EUR3.2%€7,550

Will the Euro continue to make gains against Sterling?

With most of Europe celebrating Ascension Day yesterday Euro exchange rates remained within a fairly tight range vs the Pound.

There is little data due out today on the continent so all eyes will be on next week’s data releases.

On Tuesday Eurozone Industrial Confidence data as well as Services Sentiment data is due to be released. Both sets of data have been improving in recent months so another positive announcement could see further Euro strength vs the Pound. Closely following this will be the latest German Consumer Price Index. This is a measure of inflation and as Germany is the Strongest country within the Eurozone it the figures match the expectation of 2% year on year this in my opinion should strengthen the single currency vs Sterling.

On Wednesday both Eurozone Unemployment data and Inflation levels will be released. Unemployment has been falling and if the inflation data supports that of Germany the day before again I think we’ll see GBPEUR exchange rates move in a downwards direction.

With things having now settled down politically in Europe with Macron having won and Marine le Pen now out of the picture the feeling of anti-establishment in Europe appears now to have calmed down and this has helped to strengthen the Euro against both the Pound and the US Dollar.

The slight slowdown in the US and the uncertainty caused by Trump in recent weeks has also seen the US Dollar weaken and typically this results in Euro strength which is part of the reason for what is happening to the Euro at the moment.

If you’re in the process of buying a property in Europe over the next few weeks in order to avoid any potential risks to the downside it may be worth purchasing a forward contract which allows you to fix an exchange rate for a future date for a small deposit. If you take an example of a 5% movement in the wrong direction this could be as such as £9,000 on a currency transfer of EUR200,000.

For more information on how future data releases could affect your Euro transfer, call our trading floor on 01494 725 353 or email me here.

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.

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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.