With no major EU economic data releases today the markets are now focussing on tomorrows European Central Bank meeting and subsequent press conference held by ECB President Mario Draghi. The ECB is looking to adjust its monetary policy stance in light of the recent rebound in economic growth and higher inflation for the EU as a whole.
There is much talk of a tapering of its asset purchasing scheme and so far any choice words from the President have created a strong market reaction for the Euro, so much to say that the ECB has even had to make official statements due to the reaction that has been seen. The issue for the ECB is that the Euro has seen considerable strength in recent months and recently hit an 8 year high against the pound.
If this is of major concern to the central bank then what we could see is some backtracking and this could actually see the Euro weaken off to a degree. Presently there is an excellent opportunity to sell Euros so those clients with a requirement to move in this direction would be wise to consider locking in now and taking a rate of exchange which is close to an eight year high for EUR GBP.
GBP EUR exchange rates are likely to see major volatility tomorrow as developments in the House of Commons over Brexit unfold. Tomorrow sees the debate on the Great Repeal Bill which will bring EU law into British law and could create some new twist and turns in the ongoing Brexit. Any holds up here could create problems for the British government and the pound is likely to react deepening on how things unfold. Clients with a Euro requirement may wish to look at their options and how to minimise their risk with these new developments.
If you would like further information on sterling or Euro exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on email@example.com