This Euro report will address the factors that could have an effect on Euro 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 30 days.
|Currency Pair||% Change||Difference on £200,000|
France has confirmed that its current account gap has reduced dramatically in August compared to the month before according to the Bank of France. The current account deficit fell to €1.5bn in August compared to €4.3bn the month before. Also, surplus on their Services industry grew from €0.1bn to €0.8bn.
With this adjustment the French Trade Balance figures are now in surplus of €1.6bn. This has led to the Euro making gains vs the Pound hitting the best rate to sell Euros into Sterling since mid-September.
Germany is due to release their own Trade Balance figures tomorrow morning with expectations for a surplus of €19.5bn. As the Eurozone’s leading economy is like with France the data comes out positively I think we could see the Euro make further gains vs the Pound so if you’re considering making a currency transfer to buy Euros then make sure you keep a close eye out on the data release.
The UK is currently no further into the Brexit negotiations since the start of the talks many months ago. European Commission President Jean-Claude Juncker has recently stated that ‘at the end of October, we will not have sufficient progress’ and ‘I’m saying that there will be no sufficient progress from now until October unless miracles would happen.’
The issue of Brexit has weighed heavily on Sterling since June 2016 and we are still no closer to any form of solution. With the talks continuing to stall, this is causing problems for the Pound and one of the major reasons for the Euro strength vs the Pound in recent times.
With the European Central Bank due to meet on October 26th the odds are increasing of a change to their current QE programme. Speculation has been mounting that the ECB is gearing up to tapering their current plan. The amount of €60bn per month is due to run out in December and the general view is that although it will continue we are due to see a reduction in the monthly amount.
This can surely only be good news for the single currency and therefore a reason why I expect the Euro to continue to maintain its strong stance vs the Pound. Therefore, if you’re considering buying Euros it may be worth moving in the short term. Speak with your account manager for a live quote.
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 on 01494 725 353 or email me here.
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