This Euro report will examine the factors that could affect exchange rates in the coming months to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low for the past month.

Currency Pair% ChangeDifference on £200,000
GBPEUR2.42%€5,440
Mario Draghi Speech Today

Mario Draghi, President of the ECB issues warning to his peers

Mario Draghi spoke at a conference yesterday afternoon and warned his peers that the Euro’s volatility is and will remain to cause inflationary headwinds and the Euro’s effects will be constantly measured.

Last week the Euro had a very positive string of economic data releases and possibly even more crucially, no ECB members that tried to talk the Euro’s recent strength down.

Whilst his speech did little to derail the Euro, analysts have already commented that Mario Draghi’s cautious tone could cause Euro weakness further down if the ECB don’t clarify when they are due to tighten their monetary policy, scheduled to end before the end of 2018 at present.

The ECB is concerned that the Euro’s recent strength will have a negative effect, particularly for exports and inflation.

What is likely to drive the Euro for the remainder of the week?

Little seems to be able to derail the Euro’s strength of late and with no major economic releases, the Euro looks likely to stay in the driving seat, especially against Sterling.

The EU is expecting an official update from the UK regarding its plans for future trade talks by the end of the week. Yesterday Michael Barnier stepped up the pressure on the UK EU trade deal to be agreed by stating that time is of the essence if the deadline is to be met and is the main reason why he was in the UK yesterday.

There are two members of the ECB talking on Wednesday, and their speeches will consist of talking about the Euro’s recent strength and the implications this brings, however I expect the markets to look through and continue to strengthen this week.

 

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.

News

Read more articles
Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.