The pound has risen against the Euro today as the ECB meeting passed off fairly uneventfully, but there remains a prospect that the ECB will loosen monetary policy in the future again. The European Central Bank (ECB) has been very active in the market in the last few years as they embarked on a QE (Quantitative Easing) program which has dramatically weakened and strengthened the currency.
The expectation is that the Euro could weaken further if we see a deterioration in the economic conditions for the Eurozone. General commentary surrounding the Euro has been more positive in 2017, hence the Euro rising. However fresh concerns over political challenges ahead, notably the Spanish Catalonian election and also the Italian election in the New Year, could all see the Euro on the back foot.
The pound is benefitting from fresh optimism for the ultimate Brexit deal and whilst longer-term challenges remain, the UK might be able to start 2018 in a much better position going into the all-important trade talks which will soon become the main headline grabber and driver on exchange rates.
If you have a transfer buying Euros the current levels are close to the best rates since May and this is presenting a very good opportunity. Whilst the pound could rise further in 2018, much of the current improvement could actually now be priced in and there really is a danger that hopeful Euro buyers assuming a big swing further in 2018.
If you have a transfer buying or selling Euros the next week is going to be a busy one, the Spanish election could actually see the Euro weaker but again, this could be priced in. If you wish to be kept up to date with the price swings, please speak to me Jonny by emailing firstname.lastname@example.org.
Thank you for reading and I look forward to hearing from you!