This Euro report will address the factors that could have an effect on exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved when purchasing £200,000.00 at the low and high levels during the past month.
|Currency Pair||% Change||Difference on £200,000|
The price of the Euro has remained under pressure recently falling against most major currencies. This is not really as a result of domestic pressure but more from other currencies which has seen bigger signs of improvements over recent weeks.
Last week we had the Brexit negotiations move forward and with the US raising interest rates it was really the Euro that fell in value as a result. Saying that however economic data from the Eurozone remains strong with business activity in the beginning of December being released and showing the strongest seen in nearly 7 years.
The best factory output and order book were also released since 2000 last week, this helped the overall manufacturing PMI data to remain strong. The Service sector has also seen growth to the highest level since the beginning of 2011. Mario Draghi also recently gave an update on the overall health of the Eurozone. This showed a revised growth forecast for GDP figures from 1.8% to 2.3% for 2018 and up to 1.95 from 1.7% for 2019.
Personally I expect this trend for improvements in Europe to continue and therefore for the Euro to generally gain in value against the Pound in the coming months. Saying that however rates do not move in a straight line meaning that timing a transfer remains key in achieving the best price.
Next on the horizon, European Consumer Price Index (CPI) figures are released later today and expected to show gains. This last time came in at 1.5% which it was expected to be released at 1.6%. If we were to see another contraction today expect the Euro to weaken and become cheaper to buy.
One of the talking points holding back the value of the Euro recently has been building concerns coming from Germany as they try to form a government. Over the weekend the Social Democratic Party (SDP) party in Germany confirmed that they were happy to continue talks with Markel’s conservatives on forming a coalition government.
This is seen as rather positive but we have been here so many times before. This is a topic to continue to watch moving forward.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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