Dayle Littlejohn
Senior Executive Dealer
How will Eurozone inflation impact euro exchange rates?
Mario Draghi stated last month that QE measures could continue further than expected, inflation figures are out today which could give credence to this.
This week we have key data releases which have the potential to affect EUR exchange rates in the coming weeks, European inflation numbers on Wednesday morning are predicted to show a slight contraction. 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 30 days.
| Currency Pair | % Change | Difference on £200,000 | |
|---|---|---|---|
 GBP |  EUR | 3.01% | €6,700 EUR |
Consumer Price Index numbers to influence the Euro's value
This Wednesday Europe are set to release their latest core inflation numbers and this release could have a major impact on monetary policy moving forward. Last month the European Central Bank removed the easing bias from the monetary policy statement which led many forecasters to predict that the Quantitative easing program will be removed by the end of the year. President Mario Draghi tried to talk down the move and I believe this was to keep European exports competitive. Core inflation is set to fall slightly, if this occurs I expect the euro to devalue slightly as it gives Mario Draghi fire power throughout the month to talk down the euros value by stating the QE program could be extended into 2019.
Have you just made an offer on a property abroad in Europe?
When buying property in Europe, the common process is to pay a deposit and then the full balance 1-3 months down the line. With GBPUER breaching key resistance levels over the last couple of weeks, I believe buying your foreign currency upfront will help you to budget but also could make the purchase cheaper in the long run. As I have stated within the sterling section of this report, I expect the pound to come under pressure in the upcoming months due to Brexit negotiations.
Did you know with the pound increasing in value by 2 ½ cents throughout March a €200,000 purchase is now just under £4,000 cheaper.
If you are looking to take advantage and purchase your euros upfront the key data releases to look out for this week are European inflation numbers Wednesday morning at 9am and UK Markit Services PMI Thursday at 9.30am. Both data releases are set to show a slight contraction and with the euros value going from strength to strength over the last 12 months, I’m not surprised inflation may fall, therefore if I were buying euros Wednesday morning may be the best time to buy euros this week.
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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R. Blake
First rate service from Dayle Littlejohn in dealing with our transaction from Cyprus. He kept us updated at all times and we appreciated his sincere manner.
A. Marshall
France
First class foreign currency provider, great rates and outstanding customer service.
R. Braunton
UK
Great service very professional but with a personal touch. Everything went smoothly with no fuss. Would highly recommend.