Minutes from the latest ECB monetary policy meeting will be releases tomorrow, markets can expect further insight into the direction the ECB are planning to go with further interest rate hikes. This Euro report considers the impact of this, as well as the Federal Reserve meeting -taking place tonight- on the Euro. The table below shows the difference in Euros you could have achieved when buying £200,000.00 during the high and low points of the past week.
|Currency Pair||% Change||Difference on £200,000|
Tomorrow we have ECB monetary policy meeting accounts data, this is where markets will receive more of an insight into the thoughts of the European Central Bank, as they release the minutes from their last policy meeting.
One matter that will be key is the ECB’s discussions surrounding deposit rate hikes, and the general feeling is that there is now a desire from the ECB for faster deposit rate hikes which if discussed may lead to strength for the Euro.
An increase in deposit rates will make the Euro more attractive and in turn we may see the single currency gain back some value against the Pound in trading on Thursday should this be the case.
The European economy is still not totally firing on all cylinders and I personally believe that even with this short term Euro strength there are still many more economic issues for them to unwind before they see the light at the end of the tunnel.
Another factor that may impact Euro exchange rates this week will be the Federal Reserve meeting minutes, widely covered in the Dollar section of our website. The reason this can impact the Euro is due to the fact that Euro/Dollar is the most commonly traded currency pairing, so good news for the Dollar can lead to a flow of money out of the Euro, thus making it slightly weaker. Bad news from the States can do the opposite.
Expectations are for a positive tone once again from the Fed, they have recently raised growth forecasts and appear to be hell bent on raising rates numerous times this year, so we may see the Euro weaken a little overnight tonight.
If you would like to be kept fully up to date with market movements then feel free to get in contact with your trader at FCD today, you can set rate alerts, discuss any pending exchanges and get an up to date overview on matters that may impact your exchange rate.
GBP/EUR at highest buying level since June 2017
Sterling has now hit the highest buying price against the Euro since June 2017 which has presented a fantastic opportunity for those waiting to complete on their overseas property purchase.
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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