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 month.

Currency Pair% ChangeDifference on £200,000
GBPEUR1.31%€2940

It has been no hidden secret that the Euro has enjoyed a very positive start to 2018. The EURUSD rate is currently sat at a three-year high and although the Pound has enjoyed a good run against the Euro, the Euro is still currently sat at very attractive levels for those looking to repatriate funds from Euros to Sterling.

CPI numbers to influence the Euro's value

European Central Bank Meeting next week

This meeting comes at a very important time for the Euro. This week alone, there have been three European Central Bank governing council members who have commented that the level of the Euro against its counterparts should be carefully watched.

The comments made by the three members have shared the view that the strong Euro could hamper the Eurozone’s return to normal inflationary levels by making imports cheaper.

Mario Draghi, President of the European Central Bank will need to choose his words carefully as to not strengthen the Euro dramatically at next week’s meeting.

If anything, I would expect Mario Draghi to be quite tight lipped regarding inflation and the ECB’s monetary plans moving forward.

At the start of the year, the ECB began to reduce its monthly quantitative easing to €30bn, however the current level of inflation in the Eurozone remained unchanged at 1.4% according to reports this week. My prediction is that Mario Draghi will choose to avoid talking about monetary policy in too much detail until later on the year, which could help other currencies to make inroads against the very strong Euro in the near term.

Brexit Bill and Italian Referendum

The Euro could also come under pressure in the coming weeks due to political factors too. The Brexit negotiations are expected to start any time now having had the bill pass through parliament this week and if the talks start positively I would expect Sterling to make a slight inroad against the Euro. Looking further afield, investors will soon start to think of the Italian General Election which is likely to bring with some volatility. The closer we draw to the event the more likely it is that investors will sell their positions to avoid risk, weakening the Euro.

Thank you for reading my Euro currency report, if you have any questions about an upcoming transfers 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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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.