With the currency markets moving every two seconds it can be vitally important to be aware of what is driving currencies in or out of your favour. The table below shows GBP/EUR movement during the last 30 days. Click here to see live interbank currency rates.
|Currency Pair||% Change||Difference on £200,000|
The Euro had its best year in 17 years against the US Dollar and strengthened heavily in the second part of 2017 against the Pound. With the European Central Bank having suggested an end to their Quantitative Easing (QE) policy and the possibility of starting to raise interest rates this year we could see further strength ahead for the single currency against both the Pound and the US Dollar.
In light of the recent elections held in Spain and the uncertainty caused by the Catalan issue many expected the Euro to weaken however it has maintained its strength against a host of major currencies.
The Italians have dissolved parliament for the Italian elections due to be held in March and at the moment it is not clear who will win when the results come in three months. As we saw with the UK election last year the political uncertainty caused the Pound to fall against the Euro so could the reverse happen this time round?
German Chancellor Angela Merkel could come under a bit of pressure during the next week as coalition talks are set to take place over the next few days. At the moment the German government is not as stable as it could be whilst their parties try to come to some sort of arrangement. If the talks continue to remain at a stalemate this could cause some weakness.
However, as Merkel is such a strong character and integral to the future of the European Union I can only see the talks come out positively which could lead to further Euro strength. Although, in politics nothing can ever be ruled out so if you’re concerned about what could happen to GBPEUR exchange rates then contact your account manager for a free quote.
This morning the Eurozone announces Manufacturing data for December and with last week’s German inflation coming out higher than expected another positive release could strengthen the single currency. This will be followed by tomorrow’s German unemployment rate, which is expected to fall from 5.6% to 5.5% proving the strength of the Eurozone economy.
Therefore, if you’re in the process of buying or selling Euros keep a close eye out for what could happen to rates 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.
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