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 for this year to date affecting Euro exchange rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
Those looking to convert their Euros into Pounds are in the fortunate position of being at an almost 8-year high at the current levels.
The reason behind the Euro's gains against the Pound cannot just be put down to Sterling weakness, as the Euro has also gone from strength to strength against almost all major currency pairs. It’s worth noting that EUR/USD is also trading at over a 2 and a half year high.
Fears surrounding a wave of populism appear to have lessened after elections this year in France and the Netherlands, and issues surrounding Greek bad debt and the Italian banking system also appear to have waned.
The weakening of the US Dollar due to fears of holding funds in the greenback has also been a contributor to the Euros recent gains, as there appears to be a migration of funds from the US Dollar into the Euro.
Due to the UK’s position as the financial capital of the world coming under pressure, there is now a lot of talk of which city will take over the mantle should London lose its prestigious position.
Earlier this week the Finance Minister in France, Bruno Le Maire said that France will be ‘the place to be, not just for Mr Neymar’ (see the latest football transfers if you don’t understand this comment). He accepted that Paris will need to beat Frankfurt to become the EU’s main financial centre after Britain leaves, as it’s already playing catch-up but either way these kind of comments can only be a positive for the Euro, and I expect the currency to benefit off the back of these types of comments.
The economic data out of the Eurozone this week is actually covering counties specifically as opposed to the EU as a whole, so personally I’m expecting a relatively quiet week unless any of these figures are released dramatically outside of the expectations.
The busiest morning could end up being Friday when German, Italian, Spanish and French Inflation data will be released over a period of 2 hours. Feel free to get in touch if you wish to discuss these data releases further.
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 here.
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