Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting Euro rates when buying £200,000 during the past month:
|Currency Pair||% Change||Difference on £200,000|
Thursday and Friday are the key dates this week for the Euro with the Catalonian election on Thursday, results due Friday. The election is essentially a Referendum of independence with the outcome being linked to the question of, how the region will coexist as part of Spain for the future.
The prospect for the Euro to weaken is high as this election is not straightforward in many senses. There are many different competing interests and lack of clarity over what the various groups ultimately stand for. Leading the polls jointly on 22% each are the ‘Republican Left’ and ‘Citizens’ with ‘Together for Catalonia’ coming in third.
This is the party of Carles Puigdemont who led the push to independence back in September but has been in exile in Belgium. Other parties make up the remainder and overall the split is about 47% to 43% in favour of independence as represented by the parties.
The region accounts for 1/5th of the Spanish economy and the potential for a volatile reaction on the streets, whatever the election result is very high. The election was only called in October so there has not been much time to prepare. Polls indicate support for independence amongst citizen’s remains around 40-50% so ultimately there will be many disappointed.
The scope for a much weaker Euro could be seen, particularly with Italian elections now scheduled to be held on 4th March 2018. Whatever the outcome of the Catalonian elections, the issue will remain on the agenda and as investors eye up 2018, political issues in the Eurozone are high on lists of concerns.
If you have a Euro transaction buying Sterling it really does appear that the excellent rates you have been gifted in the last 6 months could now be on the way out. Whilst the Pound remains at the mercy of stumbling over Brexit, the outlook for the UK and the Pound does appear slightly more stable. If you are selling Euros for Pounds we are still only 6 cents off the best rates in 8 years to sell the Euro for the Pound, not bad going at all.
Other economic data this week is limited from the Eurozone and I expect the election to be the main point to be aware of. If you have any transactions buying or selling Euros this year or in early 2018 why not speak to your account manager about these latest key political developments and how they could affect your exchange rate.
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 at email@example.com.
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