The Euro is poised to have another challenging year with a number of key political events which could easily trigger some volatility on Euro exchange rates. Principally political concerns are going to be a real challenge once again with the German and Spanish situations to resolve, we also have the Italian election due in March too. Early 2018 could be a very challenging time indeed for the single currency, will it survive these key tests?
In all probability, it will. Certainly, the days of talk of the Euro failing or some eurozone members being forced to adopt another currency look to be over. There has without a doubt, however, been a real change in sentiment towards the Eurozone in recent weeks owing to these political challenges. Overall markets were concerned in 2017 over the French election and also the German election, both of these events saw the Euro weaker but the weakness was generally shortlived as confidence was restored.
This could well be the case with the Italian election but with a number of far-right and even far-left anti-establishment parties looking to take control. Part of the agenda of such parties is to reject the EU and even the Euro, such moves could be very de-stabilising if it looks like they will come to fruition.
I feel the Euro will ultimately survive these events and when I say survive I don’t mean just continue, I mean to press on and perhaps be even stronger. Therefore clients looking to sell Euros in 2018 could be looking at better opportunities once we have seen these events pass off. However, it could be a brave person that waits to see what happens when there is the potential for such uncertainty.
If you have a transfer to make buying or selling Euros in 2018 making plans around key events is vital to maximising your position. We can help with the planning and execution of any strategy to help you gain the most from the market and limit your exposure to uncertainty. For more information at no cost or obligation please don’t hesitate to speak to me Jonny by emailing email@example.com