Euro should remain stronger in February

For now the Euro remains strong, Mario Draghi was very confident giving a speech yesterday in which he stated that he was happy the current economic plans in place are working.

The QE (Quantitative Easing) program which is suspected to run until 2018 was identified as likely to continue and Mario Draghi asserted he would be ready to continue this program to combat inflation problems.

With inflation rising comfortably across the Eurozone, growth picking up and Unemployment having recently fallen there are numerous reasons to be positive about the Euro at present.

Should I delay my Pound to Euro purchase?

Euro buyers might be tempted to hold particularly with Marine Le Pen catching headlines over the weekend outlining her plans for France including a withdrawal from the Euro and to relaunch a French currency. MLP is not expected to win the Presidential vote and the first run off is not until the 23rd April. However just like with the Brexit last year I expect the polls and fresh news over plans to capture headlines and potentially spook markets. Francois Fillon who had become frontrunner is really struggling under controversy he employed his wife in a fake job.

There is also Emmanuel Macron the socialist to contend with. At different times all 3 of these have been frontrunners and this will I am sure begin to weigh on the Euro further in the coming weeks and months. There is an important review of Greek debt too on the 20th February where the Eurogroup will meet to decide whether or not Greek debt can be included as part of the purchases for the European Central Bank. The road ahead for the Euro could therefore become rocky but if I had a more immediate GBP/EUR requirement I would be more concerned over how sterling will perform than waiting on a less likely scenario of Euro weakness much longer term.

If you have a GBP/EUR requirement make sure you are up to date with our team here as events could quickly change resulting in a sudden spike in your favour. Call our trading floor on 01494 725 353 or email me - Jonathan Watson at jmw@currencies.co.uk and Ill be happy to answer any of your questions.

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