This Euro report will examine the factors that could affect exchange rates this week in order 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 week.
|Currency Pair||% Change||Difference on £200,000|
Angela Merkel is ahead in the polls at the moment with her Christian Democratic Union (CDU) party on 37%. The Social Democrats (SPD) are next on 23% and Alternative for Germany (AfD) on 10%. It would be surprising if Angela Merkel did not win the Chancellorship but more than likely some form of coalition will take place with the CDU and SPD.
This should see the Euro stronger following the result, but there are of course no guarantees as to the exact behaviours of exchange rates when the news comes out. Both the French and UK election saw big swings on the GBPEUR exchange rates as the outcomes were not quite in line with expectations.
If you are considering any Euro currency exchange buying or selling, the run up to and post-election result will very likely lead to some unexpected swings and opportunities for you. The best way to capitalise on such movements is to highlight your position to your account manager here. A very popular option with many clients is the Stop / Loss and Limit Order.
With GBPEUR having risen by 4% in the last week many clients buying Euros want to protect the recent gains but also give themselves an opportunity to buy at a higher price. A Stop / Loss order triggers automatically if a lower level than is available is reached when the market drops. A Limit order automatically triggers if a higher level is reached.
The main economic news due out this week for the Euro is this morning at 10 am when we have Inflation data for the Eurozone. Inflation has been one of the most important economic indicators for the Eurozone as it has helped shape economic policy by the European Central Bank.
To control low Inflation, the ECB have used Quantitative Easing (QE) to pump money into the financial system to boost the economy and Inflation. This is now deemed to be working and the ECB are in a process of considering to withdraw the QE. Starting QE saw the Euro much weaker as it increased the money supply, withdrawing QE is likely to strengthen the Euro as it puts the ECB on a path to raising interest rates.
Sterling is on the front foot up some 6% against the Euro from the lows at the start of September. However, the overall conditions that have very recently seen the Euro hit an 8 year high against the pound remain, and longer term further Euro strength and sterling weakness seem the most likely.
Thank you for reading my Euro currency report, if you have any questions about an upcoming transfer I would be more than happy to discuss them – you can contact me with any queries on 01494 725 353 or email me here.
Jonathan Watson as ever, ensures a smooth, reliable and trustworthy transaction for the second time of service! Delightful to deal with – efficiency personified. Thank you Jonathan. Would recommend highly – 5Star.
Excellent initial guidance, and during the transaction regular communication and updates. Dealing with Jonathan Watson was a pleasure. Very reassuring.
Jonathan Watson provided very helpful advice throughout the process, as well as immediate responses to our inquiries. He and his team were patient and thoroughly professional, which helped us through some stressful moments following the sale of our property in France.