The EUR performed above expectation during 2017 and as we look ahead, those clients holding the single currency will be questioning whether this trend is likely to continue over the coming months?
Whilst the Eurozone economic output was impressive for the most part last year, the Euro’s rise against Sterling was facilitated by a complete lack of investor confidence in the UK economy. This put a huge amount of pressure on the Pound, which in turn boosted the value of the EUR to levels it may of not otherwise reached.
Yes, the EUR also had an impressive year against the USD but considering how low it had been trading against the greenback previous to this, there was always likely to be some sort of recovery.
This is not to take away from the single currencies impressive performance, which has been the currency of choice for many investors over recent times.
The point being that any performance of such strength, whether that be politically or in the sporting sense, become a very hard act to follow.
So is the EUR destined for failure?
I have no doubt that the EUR will continue to perform admirably against its major currency counterparts in the short-term. However, I am not convinced we will see it gain enough support to return to the 8 year highs we saw only recently against Sterling, or continue its current aggressive upward curve against the USD.
The US economy is performing well, despite the impending “tell-all” book which could destabilise the Trump regime and with Brexit talks starting to progress, this could help support Sterling around its current levels.
Therefore those clients with a EUR currency position may wish to consider their position and remove any risk or uncertainty by locking in now, rather than gambling on future events and an increasingly unpredictable market.
For those clients looking to trade their EUR today, Services PMI data released this morning came out slightly better than predicted at 56.6. This has done little to boost the single currencies value, with the Pound and USD finding support during early morning trading.
If you have an upcoming EUR currency transfer to make you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on email@example.com to find out all the options available to you ahead of your currency transfer.